ECG Clarifies Gov’t Debt Payment

Kwame Agyemang-Budu, ECG Boss

THE ELECTRICITY Company of Ghana (ECG) has expressed concerns over some commentaries within the public space regarding government’s settlement of its debt to the company.

In a statement signed by its Managing Director, Kwame Agyemang-Budu, ECG took time to clarify some apparent misconceptions in public about the announcement.

According to the statement, a reconciliation exercise was undertaken by ECG with all suppliers including VRA and the Independent Power Producers as well as the Ministry of Finance for the end of year 2019, where all forms of ‘government debt’ made up of MDA bills, consumption by Ghana Water Company Limited, government subsidiaries and shortfall in public lighting for the period 2019 was reconciled.

“We established that as at end of 2016, total GoG indebtedness to ECG netting off all government payments was GH¢2.63 billion,” the statement added.

It says “ECG further realized that between 2017 and 2019 GoG averagely paid two billion cedis directly to ECG’s suppliers (i.e. VRA, IPPs and GRIDCo) to defray GoG’s indebtedness to ECG.”

It added that “total GoG account as at end of 2019 has a credit balance of GH¢505.8 billion.”

The statement said considering the GoG’s average bill of GH¢100 million a month, the outstanding GoG credit of GH¢505.8 billion was enough to pay its bill for January to April 2020.

By Melvin Tarlue