Minister of Finance, Dr. Amin Adam, has said the government will conduct a sector-wide audit of the energy sector which is in line with Ghana’s current IMF-supported programme.

He explained that this has become necessary to ensure compliance in the sector, as well as, enhance implementation of the cash waterfall mechanism to reduce shortfalls.

Speaking at a joint IMF, Bank of Ghana, and Finance Ministry presser held on April 13, the finance minister said government will further review the Public Utilities Regulatory Commission’s (PURC) tariff-setting methodology to reduce or eliminate discretion.

He pointed out that this was vital to promote transparency in the formula and process of setting tariffs.

“For the energy sector, in particular, we have discussed the possibility of ensuring that the shortfall in the sector is reduced. The reforms we are pursuing as well as new ones will continue to be implemented.

“We will, for example, conduct a sector-wide audit of the energy sector, strengthen the implementation of the cash waterfall mechanism, review the PURC tariff setting methodology to reduce or eliminate discretion and also to make the formula and the process of tariff setting more transparent,” the finance minister said.

Touching on the cocoa sector, Dr. Amin Adam said the government will continue to monitor COCOBOD’s cost-cutting reforms aimed at addressing the cocoa regulator’s sustainability.

“On the cocoa sector, we will continue to pay attention to the cost-cutting measures being implemented by COCOBOD as well as continue to rationalise the cocoa road sector to make more resources available to complete ongoing road projects,” Dr Amin Adam said.

The finance minister said the government remains committed to implementing the IMF-ECF programme without derailment despite it being an election year.

He added that government aims to restore macroeconomic stability and get the economy back on a sound footing.

MA/NOQ