Former Managing Director of the Electrical energy Firm of Ghana (ECG), Samuel Dubik Mahama, has defended the reforms carried out throughout his tenure on the nationwide energy firm.
He claims that important progress has been made in income era, digitization and measurement earlier than leaving workplace.
His feedback come amid renewed strain from the Worldwide Financial Fund (IMF) on Ghana to speed up non-public sector participation within the administration of the ECG, as a part of a broader effort to handle persistent fiscal and operational challenges throughout the nation’s vitality sector.
The IMF’s place was made clear throughout discussions between an IMF employees crew led by Ruben Atoyan and Ghanaian authorities throughout a go to to Accra from April 29 to Might 15 for the sixth and last assessment of Ghana’s Prolonged Credit score Facility program.
In a press release launched on the finish of the mission, the IMF warned that deep-seated inefficiencies within the vitality sector proceed to threaten fiscal and financial stability, and pressured the necessity for stronger reforms in each the vitality and cocoa sectors.
Showing on Newsfile on Saturday, Might 16, he outlined measures launched throughout his management at ECG and claimed the corporate had begun to reverse long-standing income and operational challenges.
Mr Mahama stated ECG’s month-to-month income efficiency when he took over was considerably decrease than what the corporate later achieved.
“Once I took over ECG, its income was nowhere close to GH¢900 million,” he stated.
“We used to see 500, 600, or 700 million a month.”
He defined that the corporate’s improved monetary efficiency has in the end elevated public expectations about ECG’s money move and operational capabilities.
“A typical Ghanaian life. Once you begin incomes cash, your expectations improve,” he stated.
Mr Mahama stated one of many key administration challenges was to steadiness operational sustainability with the calls for for improved monetary efficiency.
“Working an organization required managing expectations,” he stated.
In accordance with him, many believed that if ECG’s income improved, the complete quantity generated ought to be instantly obtainable for operational expenditure.
“However so long as we get the complete GH¢1.5 billion, all of us consider that the complete GH¢1.5 billion ought to be included in our money move,” he defined.
Mr Mahama stated a lot of ECG’s improved profitability was because of loss discount applications launched throughout his administration, significantly digitalization reforms aimed toward enhancing assortment effectivity.
“We had a loss discount program beneath which we had a digitization course of that made assortment very environment friendly,” he stated.
He claimed that the reform course of had made the corporate’s assortment system extra clear and simpler to watch.
“The images within the assortment are clear and there aren’t any nooks and crannies to be seen,” he added.
Central options of the reforms highlighted by Mr Mahama included the introduction of a brand new econometric mannequin primarily based on non-public sector participation.
This method seems to be intently aligned with the IMF’s present suggestions for elevated non-public sector involvement in ECG operations.
Mr Mahama defined that beneath earlier procurement agreements, ECG relied closely on authorities funds allocations to immediately buy electrical energy meters.
“Initially, the funds says we are going to purchase 30,000 meters or 40,000 meters this month,” he defined.
A revised mannequin launched throughout his time period required meter corporations to determine native operations in Ghana and set up meters earlier than ECG may make funds.
“What we modified was that each metering provider or each metering firm ought to have an organization in Ghana,” he stated.
“The second your manufacturing facility is accomplished, we offer you an space, you measure that space, the meters are put in, and when it is put in and introduced into our system and we begin producing income, we pay you.”
He stated the deal moved ECG from a standard procurement mannequin to a results-based system that rewards actual supply and effectivity.
“So we moved away from fundamental procurement fully,” he stated.
Mr Mahama additional revealed that by the point he left workplace, ECG had considerably diminished the nationwide electrical energy meter scarcity.
“It ought to nonetheless be in place. Earlier than I left, at the moment there was no scarcity of meters for EKG testing,” he revealed.
He defined that ECG carries out roughly 100,000 meter installations each month to bridge the long-standing metering hole within the nation.
“We had been putting in about 100,000 meters a month,” he stated.
“The meter hole was enormous, so we had been very formidable to attempt to shut it.”
The shortage of sufficient metering infrastructure is estimated to be a long-standing supply of billing complaints, income leakage and buyer dissatisfaction inside Ghana’s electrical energy sector.
Regardless of the good points he outlined throughout his tenure, Mr. Mahama acknowledged that continued funding in supplies and infrastructure is required to keep up income progress and operational effectivity.
“One of many issues we realized alongside the best way was that if we did not have the supplies we would have liked to fill that hole, we would not have the momentum or our income would hit a plateau,” he defined.
