Former MD Reveals ECG Needs ₵600 Million Monthly to Thrive.
Samuel Dubik Mahama, the ex-managing Director of the Electricity Company of Ghana (ECG), disclosed that the company requires around ₵600 million monthly to function effectively.
During an interview on JoyNews’ Pulse, Mr. Mahama highlighted that the ECG is grappling with severe financial difficulties, effectively functioning on a “hand-to-mouth” basis.
Despite the rising demand for new meters and service connections, he observed that the company faces challenges in meeting these needs due to insufficient funding.
Mr. Mahama also emphasized that ECG cannot borrow money from banks as it is restricted under the Public Financial Management (PFM) Act, which requires the company to obtain proper clearance before taking on any debt. “ECG cannot simply borrow money from the bank,” he explained. “We need adequate clearance, a limitation we must work with.
Addressing concerns about the cash waterfall system, Mr. Mahama cautioned that complete adherence to this mechanism could exacerbate ECG’s financial challenges.
He stated, “Even if we follow the cash waterfall mechanism, it will only add to the financial constraints we are already facing.”
He further noted that the company is already burdened with substantial financial obligations, particularly to banks, and the costs associated with collecting payments continue to strain ECG’s resources. When the proposal for a single collection account was introduced, ECG was already heavily indebted to banks, further complicating the financial situation.
