Business News of Saturday, 18 July 2026

Source: theheraldghana.com

Selective retirement for energy sector chiefs raise questions

File photo of some executives of the energy sector File photo of some executives of the energy sector

The Government’s stated policy of enforcing the compulsory retirement age for chief executives of state institutions is coming under increasing scrutiny following what appears to be inconsistent implementation across key agencies in Ghana’s energy sector.

While some heads of state-owned energy institutions have been kicked out of office immediately upon reaching the mandatory retirement age, others continue to occupy their positions despite reportedly having exceeded the retirement threshold.

Among those who exited office is former Ghana Grid Company (GRIDCo) Chief Executive, Ing. Mark Awuah Baah, who retired after attaining the compulsory retirement age. He was subsequently replaced by Frank Asirifi Otchere. At the time, the Ministry of Energy and Green Transition attributed the leadership change to circumstances surrounding the fire outbreak at the Akosombo substation in May this year.

Similarly, the former Executive Secretary of the Energy Commission, Eunice A. Biritwum, retired upon reaching age 60 and announced the appointment of Adwoa Serwa Bondzie as Acting Executive Secretary, following a series of publications by The Herald. However, questions are being raised over the continued stay in office of other senior officials.

Acting Managing Director of the Electricity Company of Ghana (ECG), Ing. Julius Kwame Kpekpena, who was born on February 13, 1964, is currently 62 years old but remains in office. Likewise, the Chief Executive of the Ghana National Petroleum Corporation (GNPC), Kwame Ntow Amoah, is reportedly 63 years old and continues to head the state-owned petroleum company.

The apparent disparity has fuelled debate within the energy sector, with observers questioning whether the Mahama government’s retirement policy is being applied consistently and fairly, having criticised the Akufo-Addo government while in opposition for keeping retirees in office.

The government has repeatedly stated that it will not retain pensioners in office beyond the compulsory retirement age or offer them post-retirement contracts. Critics argue that any departure from that position requires a clear legal and policy justification.

Retirement policies, governance experts note, are intended to promote institutional renewal, leadership succession, predictability and fairness across the public service. Where exceptions are made without public explanation, concerns inevitably arise regarding consistency, transparency and administrative discretion.

The issue extends beyond the tenure of individual public officials to the broader integrity of public institutions.

If some chief executives are required to leave office immediately upon retirement while others remain in office beyond the compulsory retirement age, questions arise as to the legal authority under which such exceptions are being granted and the objective criteria guiding those decisions.

The debate has gained further significance as discussions continue over a proposed upstream petroleum transaction estimated at approximately US$700 million involving petroleum assets in Ghana’s Western Basin.

It is similar to the botched US$1.6 billion Aker Energy transaction during the Akufo-Addo administration, which journalists, CSOs, and prominent Members of Parliament (MPs) financially influenced ahead of a Parliamentary debate on the matter.

The proposed US$ 700 million investment, expected to involve GNPC and its subsidiary, Explorco, headed by Managing Director Samuel Opoku Arthur, would rank among the largest public investments in Ghana’s upstream petroleum sector in recent years.

Given the country’s challenging fiscal position and previous controversies surrounding attempts to acquire upstream petroleum assets, analysts say any investment of such magnitude should be subjected to rigorous technical evaluation, commercial due diligence, independent financial assessment and full public transparency. Within sections of the energy industry, speculation has emerged that the continued tenure of some public officials may be intended to ensure continuity in executing the proposed transaction. The Herald is pursuing information regarding alleged family connections and claims that retirement decisions may be linked to the proposed investment.

Although no conclusions have been drawn, further details have been deliberately withheld for now because allegations against identifiable individuals must be supported by verifiable evidence before publication.

However, information available to The Herald indicates that stakeholder engagements with sections of the media, policy commentators, and other opinion leaders are underway as the government, particularly the Ministry of Energy and Green Transition, considers the proposed investment.

The purpose and outcome of those engagements remain unclear amid arguments that, where public funds running into hundreds of millions of dollars may be committed, citizens have a legitimate expectation that transparency should precede, rather than follow, any agreement.

The broader governance issue remains unresolved. If the Mahama government’s retirement policy applies equally across the public service, why are some chief executives compelled to retire immediately while others continue in office beyond the mandatory retirement age? If exceptions are being made, what legal provisions permit them, and why have those criteria not been publicly disclosed?

Public confidence in state institutions depends not only on adherence to the law, but also on the consistent application of government policy.

The same principle should apply to the management of Ghana’s strategic petroleum assets; experts argue that any proposal to commit approximately US$700 million in public resources should be supported by transparent technical evaluations, commercial valuations, independent financial assessments and a clear demonstration that the investment represents value for money.

This newspaper will continue to monitor developments related to both the implementation of the government’s retirement policy and the proposed petroleum transaction, and will publish verified information and examine the deal’s legal and commercial basis as more evidence becomes available.

Transparency must accompany major public decisions from the outset, rather than begin only after agreements have been signed and the transactions concluded.