The former Member of Parliament for the Bongo-Lungu Constituency, Hon. Edward Abambire Bawa, has expressed concerns about the financial and operational transparency within the Electricity Company of Ghana (ECG).
Hon. Bawa noted the limited visibility over ECG’s revenue, with no clear reporting on how much is collected from electricity sales.
This lack of transparency, he argued hampers effective management and hinders accountability.
“As we speak now, nobody even knows how much ECG collects when they sell their power. Nobody knows how much is in the cash water for Mechanism.”
Hon. Edward Abambire Bawa former Member of Parliament for the Bongo-Lungu Constituency
Hon. Bawa believes that ECG’s existing structure, which involves multiple accounts spread across various banks, makes it difficult to monitor revenue flows and ensure that funds are appropriately allocated.
He called for a streamlined approach, advocating for a single account to centralize and better track ECG’s revenue.
“This is [because]These monies are found in almost 61 accounts in 16 banks, so you are unable to police when it comes, you do not even know how much they have received. And because you don’t know how much they have received; you do not know how much you even apportioned to the energy suppliers and the fuel suppliers.”
Hon. Edward Abambire Bawa former Member of Parliament for the Bongo-Lungu Constituency
Implementing IMF-Inspired Reforms for Better Cash Management
He emphasized the need for ECG to channel its funds into a single, centralized account to ensure that the revenue is used primarily for its core functions, such as settling debts to power suppliers.
He emphasized that it is not even the government’s initiative but rather a solution suggested by the IMF.
He compared the situation to a parent’s authority over a child, questioning why the government has been unable to enforce this necessary reform, stating;
“If I were to come into your house and you have your son in front of you, and you want to make sure you are in charge, and you tell your son look am talking to my colleague can you go to the bedroom, and [he does not obey].”
Hon. Edward Abambire Bawa former Member of Parliament for the Bongo-Lungu Constituency
He used the analogy to reiterate that It’s the same with the government and ECG – the directives are there, but implementation is lacking.
Historical Efforts to Improve ECG’s Efficiency
Reflecting on previous administrations, Hon. Bawa mentions the Millennium Compact II program, an initiative that sought to improve ECG’s technical and operational efficiency.
“What [the NPP] did, just because of simple procurement processes because of self-greed. We lost that 190 million dollars from the Americans and therefore could not [inject that into ECG].”
Hon. Edward Abambire Bawa former Member of Parliament for the Bongo-Lungu Constituency
According to Hon. Bawa, the lack of this capital injection hindered much-needed upgrades to ECG’s infrastructure.
These improvements could have reduced technical losses, which he estimates account for approximately 28% of ECG’s power losses – an unacceptably high figure in his view.
Reviving ECG through Private Sector Partnerships
Hon. Bawa is clear that if the opposition were to regain power, they would consider renegotiating prior agreements with a focus on revitalizing ECG.
He emphasized the necessity of capital injection into ECG’s outdated infrastructure, which he describes as “obsolete.” This lack of modern equipment contributes to inefficiencies that increase the cost of electricity distribution.
“One of the areas we are looking at for and this my flag bearer has stated it very clearly that if it demands that we go back and renegotiate because currently we have been taken out…
We want to leverage on private sector capital, leverage on private sector expertise to be able to make ECG very efficient.”
Hon. Edward Abambire Bawa former Member of Parliament for the Bongo-Lungu Constituency
Hon. Edward Abambire Bawa’s reflections on ECG’s financial and operational practices underscore a broader need for transparency and accountability within Ghana’s energy sector.
His call for reforms, including the centralization of ECG’s revenue accounts and collaboration with the private sector, aligns with prior recommendations from the IMF and other stakeholders.
By addressing these challenges, Hon. Bawa believes ECG can enhance its operational efficiency and better serve the energy needs of Ghana’s citizens.
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