KEY POINTS
- No investment was made in ECG during Akufo-Addo’s first term.
- The failed PDS deal led to ECG’s return to state control.
- ECG’s billing system struggled to handle a growing customer base.
Former Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has revealed that there was virtually no investment made in the company during President Nana Akufo-Addo’s first term in office.
Speaking at the JoyNews National Dialogue on Thursday, April 10, Mr. Mahama explained that the lack of investment was largely due to the government’s focus on privatizing the power distribution company during that period.
“If you cast your mind back, during the President’s first tenure, all efforts were geared towards sending ECG into privatization. So, there was zero investment in the company,” Mr. Mahama stated.
He elaborated on the privatization efforts, recalling the failed attempt to privatize ECG through the Power Distribution Services (PDS) deal.
The deal, which aimed to transfer the management of ECG to PDS, was short-lived, lasting only about eight months before it collapsed.
This attempt, according to Mr. Mahama, halted any significant investment or improvements in ECG’s operations. The deal’s failure led to ECG reverting to state control just as the country was heading into the 2020 general elections.
The failed PDS deal and ECG’s return to state control
Mr. Mahama explained that after the failed PDS deal, there was an urgent need to reassess the company’s structure and systems. “When I assumed office in 2022 as Managing Director, one of the first things I did was to conduct a health check on the company,” he disclosed.
During the health check, he found that while the company had experienced substantial growth in the number of customers, this growth was not properly reflected in ECG’s data systems.
The Commercial Management System (CMS), introduced through a World Bank project, was no longer effective in managing the increasing number of customers.
Health check reveals deficiencies in ECG’s system
“The billing system had its deficiencies. When it hit the 4.5 million customer mark, new customers being added were not being captured in the billing system.
They were hanging,” he said, highlighting one of the major challenges facing the company. This issue was a significant concern for Mr. Mahama, as the ability to properly track and bill customers is crucial for the company’s operations and revenue generation.
