ECG Board Chairman Defends Board Amid Calls for Dissolution

The Board Chairman of the Electricity Company of Ghana (ECG), Alexander Afenyo-Markin, has dismissed recent calls for the dissolution of the board, describing such demands as misplaced. This comes in response to calls from the Africa Centre for Energy Policy (ACEP) for the removal of the ECG board, following allegations of mismanagement and significant financial losses within the company.

ACEP’s concerns stem from the steep increase in ECG’s reported revenue losses, which have risen dramatically from GH¢295 million in 2017 to a staggering GH¢9.7 billion by 2022. The energy think tank believes that such financial mismanagement necessitates the dissolution of the current board to allow for a fresh approach in handling the company’s affairs. ACEP argues that the persistent financial losses over the years reflect poor leadership and ineffective oversight by the board, which they claim has failed to implement necessary reforms to stem the tide of inefficiency.

However, during the recent appointment of David Asamoah as the acting Managing Director of ECG, Afenyo-Markin made it clear that dismissing the board was not the solution to the challenges faced by the company. Instead, he emphasized the importance of stakeholder engagement and internal reforms to improve the company’s performance.

“I think that is a misplaced position,” Afenyo-Markin stated in response to ACEP’s calls. “However, I accept the fact that we must place our shoulders to the wheel for reforms. I mean, from outside and coming in. I think that ECG can be very efficient if we subject ourselves to reforms. And reform would involve engaging all stakeholders internally and communicating these to the external stakeholders.”

He further explained that a collaborative approach, which involves both the board and external stakeholders, is essential to achieving the necessary reforms at ECG. Afenyo-Markin believes that blaming either the public or the board for ECG’s challenges is counterproductive. Instead, he advocates for a united front where all parties work together to ensure the company operates efficiently.

“So it is an all-inclusive matter and I don’t want this blame game approach that we are blaming the public and the public is also blaming us,” he added. This statement highlights Afenyo-Markin’s belief in shared responsibility and the need for collective action to address the issues facing the electricity provider.

Afenyo-Markin also took the opportunity to assure the public that the recent changes in the company’s management, including the resignation of Samuel Dubik Mahama as Managing Director, would not result in any disruptions to the power supply. He sought to dispel fears that such leadership changes might lead to challenges in ECG’s ability to provide reliable electricity to its customers.

“The board has received the support of management in its decision, and we are here to assure you that the fact that we have had changes in management will not mean that you are going to have some interrupted power supply,” he assured. “The entire system of the company is in place, and the company will continue to provide the essential services that it provides for Ghanaians and the country.”

This reassurance comes at a time when there is significant concern among the public over the impact of leadership changes within the state-owned utility provider. ECG, which has been responsible for distributing electricity across the country, has faced numerous challenges over the years, including financial inefficiencies, technical losses, and issues related to billing and revenue collection. These challenges have, at times, resulted in power outages and general dissatisfaction among ECG’s customer base.

The concerns about mismanagement raised by ACEP are not entirely new. Over the years, ECG has been at the center of several controversies regarding its financial performance and operational efficiency. The company’s increasing debt burden and its inability to recover significant portions of its revenue have been highlighted as major weaknesses that need urgent attention. ACEP’s call for the board’s dissolution is rooted in the belief that without leadership changes at the top, these issues will persist and continue to hinder ECG’s performance.

Nevertheless, Afenyo-Markin’s response suggests that the current board is committed to addressing these challenges and that reforms are already underway. His call for stakeholder engagement indicates that the board is open to working with various partners, both internal and external, to implement the necessary changes that will steer the company in the right direction.

As ECG continues to navigate its current challenges, the public will be watching closely to see if the promised reforms will yield the desired results. The focus on collaboration, as advocated by Afenyo-Markin, may be the key to unlocking the company’s potential and ensuring that it can meet the growing energy demands of the country.

In the meantime, the board remains steadfast in its position, determined to drive the reforms needed to improve ECG’s financial and operational efficiency. With the recent appointment of David Asamoah as acting Managing Director, there is hope that fresh leadership might bring new strategies to address the company’s ongoing challenges. However, it remains to be seen whether these efforts will be enough to satisfy critics and restore public confidence in ECG’s leadership.

The debate over whether the board should be dissolved is likely to continue in the coming months as the company works to implement its reforms and improve its financial standing. What is clear, however, is that the current board is not backing down and is focused on finding solutions that will benefit both the company and its customers.