Samuel Dubik Mahama, the Managing Director of the Electricity Company of Ghana (ECG), has resigned from his position.
In a letter addressed to the Board Chairman of ECG, Mahama provided no official reason for his resignation, leaving many in Ghana’s energy sector surprised, especially given that he had held the role for only the past two years.
Mahama was appointed by President Nana Addo Dankwa Akufo-Addo on 16 May 2022, and prior to this role, he served as a non-executive director at ECG. With extensive experience in both the private and public sectors, Mahama has also held positions at GIHOC Distilleries, served as the country representative for Gulfsouth Forest Products, and was a partner at Dubik & Associates, Wilkins Engineering. He is a legal practitioner and a graduate of the University of Ghana.
The resignation comes amid ongoing financial challenges for ECG, which has faced losses attributed to power theft and other issues within the power sector. Some industry players have accused the company of mismanagement. In light of these claims, ECG has strongly rejected allegations that it has failed to meet its payment obligations under the Cash Waterfall Mechanism (CWM).
Concerns have been raised regarding payment shortfalls, particularly for May, June, July, and August, with some Independent Power Producers (IPPs) confirming they had not received payments during these months. In response, ECG maintains that the reports circulating in certain sections of the media do not accurately reflect its compliance efforts or the operational challenges it faces.
To support its position, ECG outlined five key points. Firstly, it highlighted the failure of stakeholders to confirm actual payments, asserting that the inability of IPPs to validate the amounts received does not necessarily indicate a breach of the cash waterfall mechanism.
Furthermore, ECG contended that it has fully complied with payments to Tier 2 beneficiaries, including the Public Utilities Regulatory Commission (PURC), during the reviewed period. In addition, ECG stated that payments for July and August 2024 have been initiated to address outstanding balances.
The company also cited foreign exchange losses as a complicating factor in its compliance with the Cash Waterfall Mechanism, noting that discrepancies between the PURC exchange rate and rates from the Ghanaian market have led to substantial losses. Lastly, ECG pointed out that costs associated with procuring fuel necessary for a stable power supply are not adequately reflected within the CWM framework, revealing that it incurred GHS 466 million in liquid fuel purchases due to unplanned supply challenges.
While acknowledging valid concerns raised by stakeholders, ECG urged the public to consider these factors before drawing conclusions about its financial integrity and commitment to the Cash Waterfall Mechanism.
Pulse
