Samuel Dubik Mahama, the former Managing Director of the Electricity Company of Ghana (ECG), has defended the reforms implemented during his time in charge. He stated that significant progress was made in collecting money, using computer systems, and installing meters. These remarks come as the International Monetary Fund (IMF) is pushing for more private companies to get involved in ECG’s work. The IMF believes this will help solve ongoing problems with the country’s power system.
The IMF’s view was shared during a meeting in Accra from April 29 to May 15. An IMF team led by Ruben Atoyan discussed Ghana’s economic plan with government officials. The IMF warned that problems within the energy sector are still hurting the nation’s money situation and making the economy unstable. They stressed that bigger changes are needed in both the energy and cocoa industries.
Appearing on Newsfile on May 16, Mr. Mahama explained the steps taken under his leadership. He argued that ECG had started to fix long-standing issues with revenue and how the company operated. He said that when he first took over, ECG's monthly income was much lower. "When I took over ECG, ECG’s revenue was nowhere near GH¢900 million," he stated. "I used to see on a monthly basis 500, 600 or 700 million." He added that this improvement created higher demands from the public.
Mr. Mahama explained that one of his main jobs was balancing the company’s need to operate smoothly with demands for better financial results. "I needed to control expectations to be able to run the company," he said. Many people thought that all the money collected should be immediately available for company expenses. "But everybody believes that so far as you are getting that whole GH¢1.5 billion, you should bring the whole GH¢1.5 billion into the cash flow," he clarified.
Much of the increase in ECG’s income was due to a plan to reduce losses. This was achieved through digital systems that made collecting payments more efficient. "We had the loss reduction programme, under which we had the digitalisation process which made collections very efficient," he stated. He maintained that the company’s systems for collecting money became clearer and easier to track. "The picture on collection is clear, there is no corner about it," he added.
A key reform Mr. Mahama highlighted was a new way of installing meters involving private companies. This approach aligns with the IMF's current advice for more private involvement in ECG. Previously, ECG relied on government money to buy meters. Mr. Mahama said that under the new system, meter suppliers must set up operations in Ghana. After they install meters and ECG starts getting money from them, ECG pays the suppliers. "So we moved away totally from the basic procurement," he explained.
By the time he left his job, Mr. Mahama stated that ECG had fixed a major problem with not having enough electricity meters. "Before I was leaving, at that point there was no meter shortage at ECG," he revealed. His team was installing about 100,000 meters each month to close a big gap. "We were doing about 100,000 meter installations a month," he said. Not having enough meters caused issues like estimated bills, lost revenue, and unhappy customers for years.
Mr. Mahama acknowledged that keeping revenue growing and operations running well requires ongoing investment in materials and power lines. "One of the things that we saw in doing that was that to be able to close that gap, if you don’t have the requisite materials in place, it will not drive or the revenue will plat