The Ghana Gas Senior Staff Association (GGSA) is cautioning the Electricity Company of Ghana (ECG) of a possible return to the era of frequent power outages locally known as ‘dumsor’ should it fail to pay monies owed them.
“We call for prudent actions to reinstate the Cash Water Fall Mechanism and payment of all outstanding invoices due Ghana Gas to give reliable gas supply to prevent power crisis (dumsor) on innocent Ghanaians and the country at Large,” it said.
According to Ghana Gas, refusal to pay the amount in question could prove inimical to the operations of the institution. The association has bemoaned what it said has become typical of the energy sector of the country, thus ECG’s inability to pay back state-owned institutions moneys it owed them.
The gas processing institution laments that the financial obligation disregard posture displayed by the ECG poses a threat to the energy sector’s stability.
“This issue not only raises questions about financial prudence, but also poses a significant threat to the stability and operations of Ghana Gas, a cornerstone of the nation’s Energy Sector,” it said in a letter to the ECG.
According to conditionality given by the International Monetary Fund (IMF) in the wake of the country’s IMF support programme, timely payments are supposed to be made to the state-owned enterprises, especially those within the energy sector.
But the ECG has departed from this directive, the GGSA said. It therefore questioned the financial discipline of the energy sector, lamenting that ECG’s non-compliance to the directives has plunged the Ghana gas into a financial limbo.
“Despite these directives, ECG’s non-compliance persists, leading to a situation where critical entities like Ghana Gas are left in financial limbo, struggling to fulfill their obligations and maintain operational efficiency.”
“The financial strain on Ghana Gas not only affects its day-to-day operations but also jeopardizes its ability to meet critical financial commitments, including payments to suppliers such as Tullow, a major provider of raw gas. This situation places Ghana Gas in a Catch, where the very entity it serves fails to reciprocate the necessary financial support.”
“The energy sector, a vital component of Ghana’s economic growth, is now at risk of disruption. The inability to settle financial obligations not only hampers Ghana Gas’s ability to maintain infrastructure and operations but also reverberates through the entire energy supply chain, affecting stakeholders and service providers alike,” the letter said.
Source: Dehotpress
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