Industry experts are grappling with the sudden resignation of the Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama. This move has ignited a wave of reactions, with many expressing concern about the future of ECG, a critical player in Ghana’s energy sector.
The resignation comes at a time when ECG has been struggling with substantial financial challenges, including mounting debts. Among those reacting is Dr. Yussif Sulemana, Energy Strategist and CEO of Eureka Energy Solutions, pointed to these difficulties as a likely factor behind the departure of Samuel Mohammed.
“I found that very unfortunate,” Dr. Sulemana commented, “but many will not see it as a surprise, especially after the recent news of indebtedness reported with respect to ECG operations.”
Over the past few months, ECG has faced heightened scrutiny over its financial performance, leading many to believe that changes in leadership were imminent.
There had been growing speculation that the leadership at ECG might face significant consequences due to these challenges.
“One would have been expecting that some heads would roll,” Dr. Sulemana noted, underscoring the pressure on ECG management to address the company’s financial problems.
Despite the financial turmoil at ECG, Dr. Sulemana offered praise for Samuel Mohammed, describing him as one of the best leaders the organization had seen in recent times.
“If you ask me about Samuel Mohammed as a person, I believe he was one of the best we could get, as a matter of fact, in government SOEs (State-Owned Enterprises).
“He managed to take some bold decisions that, of course, were not palatable, or something that some political class would not find comfortable.”
Dr. Yussif Sulemana, Energy Strategist and CEO of Eureka Energy Solutions,
According to him, Mohammed’s approach to addressing ECG’s problems was exactly what was required, even if it made him a target of political pressure. “If you pursue that course and put ECG on that trajectory, the chances are that if you don’t have the full support of the appointing bodies, you will definitely go.”
Concerns About Leadership Stability
Dr. Sulemana expressed concerns about the continuous reshuffling of leadership within ECG and other critical state institutions.
“I find it very unfortunate, that if you keep running our critical institutions and keep creating power vacuums this way, then it’s going to affect the running of those institutions.”
Dr. Yussif Sulemana, Energy Strategist and CEO of Eureka Energy Solutions,
Comparing ECG to the Tema Oil Refinery (TOR), which has also experienced frequent changes in leadership, Dr. Sulemana highlighted the importance of stable management for the success of such Company.
He further noted that the frequent changes at the top level of ECG were harmful to the company’s long-term success.
Samuel Mohammed’s departure leaves ECG at a critical juncture. According to Dr. Sulemana, the company plays a vital role in the country’s power sector. He highlighted the losses ECG has been grappling with and suggested that Mohammed had been working towards minimizing these losses, despite the challenges.
“ECG is something that we can’t afford to get wrong. If you don’t get ECG right, we can be sure that the transmission and distribution sectors are equally going to struggle.”
Dr. Yussif Sulemana, Energy Strategist and CEO of Eureka Energy Solutions,
Dr. Sulemana called for an in-depth audit of the company’s board to assess its role in the company’s recent struggles.
“We need to find the underlying causes, though [Mohammed] mentioned that it’s personal reasons, we need to know what those reasons could be,” he said. Understanding these factors will be crucial to preventing the new managing director from facing the same issues, he added.
“There’s a social call for the board to go,” Dr. Sulemana continued, suggesting that if the board’s contribution to ECG’s efficiency is found lacking, its members should also be replaced.
However, he emphasized that removing the managing director does not necessarily mean the entire board should be dismissed.
Ultimately, Dr. Sulemana urged for the right support to be provided to ensure that ECG can fulfill its mandate, particularly minimizing losses and ensuring a continuous cash supply to the rest of the power sector.
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