VRA's Losses In The Trillions

Accra, Sept. 21, GNA - Losses incurred by the Volta River Authority (VRA) is running into trillions of cedis over the last 10 years, Dr. Kwesi Nduom, Minister of Energy said on Monday.

He declined to state the exact amount but said at the last count, back 10 years, "we are entering the trillion mark."

This has stalled the ability of the Authority to source funding on its own to operate the Aboadze Thermal Plant, resulting in the Ministry of Finance and Economic Planning to guarantee letters for the purchase of crude oil.

The Minister said this at a press conference in Accra on Monday to explain recent events that have taken place at the VRA and confirmed the resignation of Dr Charles Wereko Brobbey its Chief Executive and his Deputy Mr Jabesh Amissah-Arthur.

He said a five-man committee had been put in place headed by Mr Kweku Awortwe, a management personnel of the Ashanti Goldfields to run the affairs of the Authority for the next three months until the President appoints a substantive Chief Executive.

Dr. Nduom corroborated the suspension of some executive members, who worked with the two top executives to rent the Strategic Reserve Plant. He said the losses were from operational losses and financial losses from money spent on purchase of inappropriate plants and wasteful projects.

"These losses have resulted from having to import power from Cote d'Ivoire at a high cost."

He said government had put in place investigations to bring to book persons who through negligence and inaction had led to the loss of such huge sums to the nation.

Dr. Nduom said the VRA Act put too much power in the hands of the Chief Executive, "and this is being reviewed to ensure that there is separation of powers with a proper balance."

"It is also to make sure that it is in line with management and organizational practices. There must be a clear difference between the Chief Executive and the Board of Directors and their powers," he added. On the issue of Mr Awortwe Chairing the Management Team, Dr Nduom said government was well aware of the fact that Mr Awortwe headed discussions between AGC and VRA, "but steps have been taken to ensure that persons appointed sever all links with organizations who might influence their actions.

"We should also not forget that he would be on a temporary assignment."