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Home Featured

NPP planning to handover $2bn energy sector debt to NDC – Minority

GhanaPoliticsOnline.com by GhanaPoliticsOnline.com
September 20, 2024
in Featured, General News, NPP News
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The Minority in Parliament is calling for a comprehensive audit of Ghana’s energy sector to assess the extent of its debt.

The caucus claims that the sector’s debt has exceeded $2 billion, attributing the increase to the government’s mismanagement of funds collected under the Energy Sector Levy Act (ESLA).

Additionally, the group points out that the Ministry of Finance has failed to pay for GH¢1.8 billion worth of power consumed by Ministries, Departments, and Agencies (MDAs) since August 2023, a situation that has severely impacted the power sector.

Speaking to the media, John Jinapor, the Ranking Member on Parliament’s Energy Committee, accused President Nana Addo Dankwa Akufo-Addo’s administration of planning to leave a collapsed energy sector for John Dramani Mahama’s future government.

“PURC based on its statement, has indicated that ECG is not abiding with the Cash Waterfall Mechanism and it is the mechanism that allows companies and entities throughout the energy sector value chain to get some revenue or payment, that has been jettisoned. As if that is not enough, the Ministry of Finance, since August 2023 has not paid up even a Cedi for power consumed by ministries, departments and agencies.

“From our rough estimates, that debt alone amounts to GH¢1.8 billion. Clearly, they are just trying to manage the system and hand over a dilapidated, ageing equipment, collapsed energy sector to President Mahama When he assumes office.”

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“A lot of work awaits President Mahama when he assumes office. The energy sector debt alone, based on our rough estimate, is around $2 billion as we speak. They are misapplying the energy sector levy revenues and they are also misapplying the energy sector recovery levies,” John Jinapor added.

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