Minister of Energy and Green Transition, John Abdulai Jinapor, has halved the annual operational budget allocation of the Electricity Company of Ghana.
John Jinapor’s decision comes on the back of a report that revealed that over 1,300 containers belonging to the ECG had mysteriously vanished from the Tema Port.
The ECG’s budget will now be reduced from a staggering GH₵500 million to GH₵250 million following reports of the missing containers.
The decision aims to help settle debts owed to power producers.
Jinapor disclosed that ECG was initially allocated GH₵935 million in 2023 for planned procurement. However, the company exceeded its budget by a staggering GH₵7.3 billion, primarily due to excessive cable purchases.
This financial strain has resulted in revenue shortages, leading to missing containers at the port due to unpaid clearance fees.
Speaking on the floor of Parliament, Jinapor assured Parliament that steps were being taken to prevent further financial mismanagement and ensure ECG remains operational.
“We have reduced their budget from GHc500 million to GHc250 million. Because we must pay the power producers. Today, the bill is over GHc80 billion in the energy sector. If we don’t do something, this sector will collapse. As a minister, I am determined to do my bid no matter how difficult it is,” he stated.
An investigative report carried out uncovered the containers supposed to be cleared at the Tema Port cannot be accounted for by the port authorities.
Prof Innocent Senyo Acquah, the chairman of the committee that conducted the investigation noted that the ECG claimed to have 2,491 uncleared containers that comprised cables as well as other equipment belonging to ECG.
According to an independent audit at the port, they found only 1,134, leaving 1,347 unaccounted for.
John Jinapor also stated they are going to work with the Attorney General and the Police to retrieve the containers or the monetary value of the same.
John Jinapor stated, “The over 1,300 containers cannot vanish into thin air. We will work with the AG and the Police to ensure those responsible are brought to book to retrieve the containers or the monetary value of the same”.
“It cannot be business as usual. We are not targeting anybody, but we will make sure whoever is responsible will be held liable,” he added.
He further announced that the procurement unit at ECG would be dissociated within a week and promised to commence swift, far-reaching measures to reform procurement procedures at the company.
