The Ranking Member on the Energy Committee of Parliament, John Abdulai Jinapor has alleged that the resignation of Samuel Dubik Mahama as Managing Director of the Electricity Company of Ghana (ECG), was linked to a dispute over fuel procurement for power generation within the energy sector.
It came out on Wednesday that Samuel Dubik Mahama had resigned as ECG MD citing personal reasons and thanked the board for the working relationship and the opportunities, leading ECG offered him.
Speaking on the television programme, Good Morning Ghana on Metro TV on Thursday morning [Sept 26, 2024], Mr Jinapor claimed that Mr Dubik Mahama’s resistance to efforts to bypass the cash waterfall mechanism played a significant role in his decision to step down.
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.
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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 further explained that the procurement of light crude oil, traditionally handled by the Volta River Authority (VRA), was shifted to ECG.
To him, if the current fuel procurement practices persist, the energy sector could face $480 million in debt by the end of the year.
He also disclosed that ENI had drawn down its $500 million guarantee to just $120 million and is threatening to stop supplying gas unless payments are made.
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