The Minister-Designate for Energy, John Jinapor, has directed the Electricity Company of Ghana (ECG) to immediately halt all payments for supplies, as part of efforts to address inefficiencies and stabilize the power sector.
Jinapor issued a stern warning to ECG staff, especially those in the finance directorate, about serious repercussions if the directive is disregarded.
Speaking on Citi FM’s Eyewitness News, Jinapor disclosed that the directive, endorsed by the Chief of Staff, aims to eliminate financial leakages in ECG.
He highlighted the company’s financial struggles, revealing that over 40% of generated power goes unaccounted for a figure significantly higher than the 2-4% losses recorded in other countries.
“The challenge of money emanates from inefficiencies,” Jinapor stated.
“If ECG loses over 40% of its power generated, no matter what you do, you cannot find a solution. With $100 worth of power, ECG collects only $60, and yet there are deductions for contracts, quality assurance, IT, and other provisions.”
Jinapor further noted that ECG operates over 70 bank accounts, making financial monitoring and control almost impossible. As part of his reform agenda, he pledged to streamline ECG’s operations by consolidating these accounts and implementing strict financial discipline.
“All those numerous accounts will be closed. This sector needs reform, and we will reform it,” he stressed.
Jinapor’s directive follows his earlier concerns about an impending power crisis, or dumsor, due to a severe fuel shortage.
Speaking after the inauguration of President John Dramani Mahama on January 7, 2024, Jinapor revealed that the nation’s fuel stock was alarmingly low, with only five hours of supply remaining.
He criticized the outgoing administration for failing to procure sufficient fuel supplies, leaving the incoming government in a precarious position.
Despite assurances during the transition that fuel parcels had been procured, checks showed inadequate stock to last even two days.
Jinapor warned that even if fuel orders were placed immediately, it would take about eight weeks for the supplies to arrive and be processed, potentially resulting in prolonged power outages.
The Minister-Designate has assured Ghanaians that these measures, though drastic, are essential to stabilize the power sector, enhance efficiency, and improve service delivery.
Energy Minister designate orders halt on ECG payments to all suppliers https://t.co/ALzniH53sU via @effsevans
— #TV3GH (@tv3_ghana) January 9, 2025
