PUWU demo today over ECG privatisation

The Public Utilities Workers Union (PUWU) will hit the streets from today, Wednesday August 24, to Friday August 26, to embark on a nationwide demonstration against government’s moves to privatise state power distributor, Electricity Company of Ghana.

According to the workers, their demonstration is to register their disapproval of the planned privatisation by the Government of Ghana (GoG) as part of conditions for the government to access a grant of US$498.2 million from the United States of America to support the energy sector in Ghana.

The General Secretary of PUWU, Michael Adumatta Nyantakyi, at a press conference on Tuesday August 23, said the problems currently confronting the EC could not be solved through privatisation.

He said at the moment, the company was faced with managerial and governance inadequacies, which were impacting negatively on staff morale and discipline. The other issues, he stated, were political interference in the administration of the company; non-payment of bills by the Government of Ghana, and state institutions, especially the ministries, departments, and agencies; lack of cost reflective tariffs (inherent subsidies not paid by GoG); inadequate power generated, which affects volume of sales and turnover; and transmission, capacity-related challenges.

These challenges confronting ECG, if solved, will make the company a viable one, according to Mr Nyantakyi.

He said: “We (PUWU) strongly believe that ECG can be transformed to achieve the goals of the Compact Two without private sector privatisation. This can be done through a disciplined managerial and governance transformation devoid of political interference. Appoint a dynamic and competent leader through competitive processes on a fixed term contract (5 or 6 years) renewable – a binding contract based on key performance indicators which can be verified. Create an environment that will enable the Managing Director to have a free hand to manage and operate the distribution business on sound business and public service ideals.”

He further indicated that should ECG be privatised, Ghanaians would have to pay more for power since private investors operate to make profit. “[There will also be] danger or threat to local content and repatriation of profit by the foreign private investor and the negative impact on the cedi,” he added.