Gov’t has settled its debt-MD, ECG

The Electricity Company of Ghana (ECG) has asserted its balance sheet is now stronger after gov’t settled its debt.

The Managing Director in a statement indicated that government had “averagely paid GHC2 billion directly to ECG’s suppliers (i.e VRA, IPPs and GRIDCo) to defray the Government of Ghana’s indebtedness to ECG.”

Mr. Kwame Agyeman- Boadu, in the statement said “It is important to add that GoG has also paid an amount of GHS4.14 billion directly to various fuel suppliers and power producers and is yet to be credited to GoG’S account under the ongoing reconciliation exercise.”

He also confirmed that the total government of Ghana’s account as at the end of 2019 had been credited with 505.8 million cedis.

He said “it is enough to clear the first quarter of the government’s 2020 bill which averaged 100 million cedis monthly.”

The Minister of Energy, John Peter Amewu, had said the government had paid GHS2 billion annually to cover its bills.

Addressing a press briefing organised by the Information Ministry recently, the Minister said “It is a fact that on assumption of office, this administration was confronted with a huge indebtedness to the ECG. As of December 2016 the state owed ECG GH¢ 2.63 billion. Government ensured it was current on all bills incurred from 2017.

“At the end of 2019, all government bills with ECG had been paid and government had a credit balance of GH¢ 500 million with ECG and that was more than enough to settle government bills to ECG from January to April 2020,” he said.

“It is also interesting to note that an un-reconciled additional payment of GH¢ 4.14 billion has also been made to various small suppliers of power producers which is yet to be credited to government under the ongoing Power Reconciliation Exercise.”

By: Rainbowradioonline.com

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