ECG privatization: Gov’t being irresponsible – PUWU

The Public Utilities Workers Union (PUWU), has said government is running away from its responsibility to Ghanaians and the Electricity Company of Ghana (ECG) by seemingly relinquishing their control over the company to private entities.

According to them, government should be putting in place measures to overcome the governance and managerial challenges ECG is facing instead of engaging private partners.

President John Dramani Mahama has already insisted that his government does not intend to privatize the country’s power distributor, explaining that government is only leveraging on the private sector to reach out to more clients and also boost revenue collection.

The compact 2 of the Millennium Challenge Account (MCA) between the Government of Ghana and the Millennium Challenge Corporation of the United States of America is a Power Compact-aimed’ at transforming ECG by enhancing technology and making power distribution efficient.

But speaking on the Citi Breakfast Show, the Deputy General Secretary of PUWU, Michael Nyantakyi, noted that ECG may not be sold to a private company in conventional sense but they were ceding control to private entities per arrangements under the compact 2 agreement.

He also insisted there were better alternatives than privatization to solving ECG’s problems that will ultimately benefit Ghanaians.

“We are simply not looking at alternatives that will inure more to the benefit of Ghana but rather to a foreign investor and we think that there are better alternatives than this approach to private sector participation,” Mr. Nyantakyi stated.

Mr. Nyantakyi further argued that whatever arrangements could be put in place to reduce government indebtedness under a private management could be implemented without the private sector involvement.

“If within whatever arrangement, when a private sector person comes in and government can pay their debts and make sure MMDAs pay their bills, then it means it is possible that even in this current arrangement, governments can pay its bills and MMDAs must settle whatever utility bill they consume.”

He is of the view that ECG has been entrusted to government and it should take responsibility and deal with the problems.

“If there are governance and managerial challenges, the person who appoints them should fix it. You don’t abdicate that role and say let a private man come and fix it. It means you are not trying to take the responsibility we have entrusted to you,” the PUWU executive stated.

Mr. Nyantakyi suggested that government rather gives an individual specific targets in the long-term and avoid the unnecessary interference if the company is to be viable.

“Get a managing director, give the person a five or six year contract and key performance indicators. Public influence or governmental interference are curtailed and let the person achieve what we want the company to bring in. If the person fails, fire him or her and that will insulate all this political interference that many people don’t know is the bane and the cause of the inefficiencies and the challenges facing ECG.”

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