Ghana Gas Staff join mounting pressure on ECG to pay outstanding debts

The Senior Staff Association of Ghana Gas Company Limited has served notice of possible power outages in the coming days if the Electricity Company of Ghana (ECG) does not pay outstanding debts.

According to a statement signed by its Chairman, Richmond Kabiru Alamu on Wednesday, December 20, the high level of indebtedness has “far-reaching’ repurcussions which could potentially disrupt the delicate balance within the energy sector”.

Ghana Gas is therefore urging the power distributing company to make immediate payment due, particularly, to Ghana Gas.
“The inability to settle financial obligations not only hampers Ghana Gas’s ability to maintain infrastructure and operations but also reverberates through the entire energy supply chain, affecting stakeholders and service providers alike.”

The Senior Staff Association of Ghana Gas Company Limited further stated that “the energy sector, a vital component of Ghana’s economic growth, is now at risk of disruption,”.

“Despite these directives, ECG’s non-compliance persists, leading to a situation where critical entities like Ghana Gas are left in financial limbo, struggling to fulfill their obligations and maintain operational efficiency.”

It explained that the International Monetary Fund (IMF), which is helping Ghana to resuscitate its sunken economy, directed timely payments to state-owned enterprises as part of international best practice.

“ President Nana Addo Dankwa Akufo-Addo and Vice President Dr Mahamudu Bawumia also made a similar call” the statement added.

The statement later insisted: “Adherence to IMF conditionality and presidential directives is crucial for maintaining financial stability and ensuring the seamless functioning of critical entities within the energy sector.
“The government and relevant authorities must address this issue promptly to mitigate the potential economic fallout and uphold Ghana’s reputation as a responsible and stable investment destination.”
The heavily indebted Electricity Company of Ghana has come under fire for what critics and stakeholders in the sector describe as misplaced priority after the recent donation of motorbikes to the Ghana Police Service.
The 200 motorbikes presented to the Police Adminsitration last Monday, 11 December, 2023, is the first batch of 1,000 motorbikes to be presented according to the ECG Board Chairman, Keli Gadzekpo .
It will be recalled that on 15th December, 2023, the workers union of Ghana Grid Company, GRIDCo also issued threats to plunge the nation into ‘dumsor’ this Christmas if the financial status of the company is not improved with
“The main cause of the poor cash flow situation is because the Cash Waterfall Mechanism which is used as the mode of payment to the industry players within the sector is not working and is suspected to have been discontinued,” they stated.

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