The resignation of Samuel Dubik Mahama as Managing Director of the Electricity Company of Ghana (ECG) has been linked to a dispute over fuel procurement for power generation within the energy sector, according to John Abdulai Jinapor, the Ranking Member on the Energy Committee of Parliament.
Samuel Dubik Mahama praised the board for their working relationship and the possibilities that managing ECG had provided him with when it was announced on Wednesday that he was resigning as MD of ECG, citing personal reasons.
Speaking on Metro TV’s Good Morning Ghana on Thursday, Mr. Jinapor asserted that a major factor in his decision to resign was Mr. Dubik Mahama’s opposition to attempts to get around the cash waterfall system.
Jinapor claimed that the ongoing procurement of light crude oil for power generation, which costs Ghana around $40 million per month, has caused growing tensions.
Under Dubik Mahama’s leadership, ECG tried to adhere to the waterfall mechanism, a system meant to ensure transparent and fair distribution of revenue among stakeholders.
However, according to Mr Jinapor, some government officials pressured Mr Mahama to bypass this system, increasing the financial burden on ECG.
“The resignation of the ECG MD is directly linked to these procurement issues,” Jinapor said.
“He resisted attempts to bypass the mechanism that was designed to prevent financial mismanagement in the sector, and that resistance led to his resignation.”
Jinapor went on to say that ECG had taken over the Volta River Authority’s (VRA) long-standing role in the acquisition of light crude oil.
He believed that by the end of the year, the energy industry might be in debt $480 million if the present fuel purchase procedures continue.
Additionally, he revealed that ENI had reduced its $500 million guarantee to just $120 million and threatened to stop delivering petrol in the event that payments were not received.
Source: Adomonline.com