ECG piles up $1m debt per week as GRIDCO debt rises to GHC600m

Lorlornyofm
By Lorlornyofm August 14, 2017 20:57

ECG piles up $1m debt per week as GRIDCO debt rises to GHC600m

The head of Ghana Grid Company (GRIDCO) has been wailing over the weight of debt threatening to paralyse the company.

According to William Amuna, ECG who is one of the debtors of GRIDCO piles up at least a debt of one million dollars per week.

“We bill them about 13 million cedis per week out of which they pay 8 million cedis per week. So in dollar terms it means they continue to build up that debt about $1 million per week,” he said.

The situation, he explained was even an improvement of what used to be a dire situation.

Appearing before members of the Public Accounts Committee of Parliament Mr William Amuna said the company is owed over $600 million by stakeholders in the power sector.

He was present to explain the content of the 2015 Auditor General’s report which suggested the company had been distressed by a debt of 152.7 million cedis.

Since 2015, it doesn’t appear the company is doing any better in recovering its debt. Rather it keeps piling up more, Amuna admitted.

The country suffered a four year power crisis with most parts of the country plunged into darkness for most parts.

At a point the load shedding regime was 24 hours off, 12 hours on, with its attendant job losses, and collapse of businesses.

As if the dreadful impact on jobs and economy was not enough, the power crisis also left more debt for GRIDCO.

Out of the $600 million debt, Mr Amuna said VALCO owes GRIDCO $20 million.

When he was asked how his outfit was working towards retrieving the debt, his answer was not encouraging.

“I think the debt has gotten worse. As it stands today we are owed over 600 million cedis. There are so many things that contribute to this. ECG continues to build up the debt.

“Unfortunately we are unable to disconnect them because if you disconnect them it will have a domino effect. Our hospitals will not be working, Parliament will not be sitting here anyway. Everything will come to a stall,” he stated.

He said the Energy Ministry is coming up with a new arrangement to resolve the debt crisis the company is enduring.

When he was asked what the company was doing to ensure that the debts do not pile up, he said they have been disconnecting the mining companies who owe them in order to ensure the debts do not pile up.

Source: Myjoyonline.com

Lorlornyofm
By Lorlornyofm August 14, 2017 20:57
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