ECG MD resigned over fuel procurement dispute – John Jinapor alleges

The Ranking Member on the Energy Committee of Parliament, John Abdulai Jinapor, has linked the resignation of Samuel Dubik Mahama, the former Managing Director of the Electricity Company of Ghana (ECG), to a dispute over fuel procurement in the energy sector.

Jinapor alleged that Dubik Mahama’s decision to step down was influenced by pressure to bypass the cash waterfall

Read full articlemechanism, a system intended to ensure fair revenue distribution among stakeholders.

During an appearance on Metro TV’s Good Morning Ghana on Thursday, September 26, 2024, Jinapor claimed that Dubik Mahama’s commitment to upholding the mechanism led to tensions with certain government officials.

“The resignation of the ECG MD is directly linked to these procurement issues,” Jinapor stated.

“He resisted attempts to bypass the mechanism that was designed to prevent financial mismanagement in the sector, and that resistance led to his resignation.”

According to Jinapor, ongoing procurement of light crude oil for power generation, costing Ghana about $40 million monthly, has significantly strained ECG’s finances. He noted that Dubik Mahama’s leadership tried to maintain transparency in the procurement process despite mounting pressure to increase costs, which eventually resulted in his resignation.

Jinapor also expressed concern over the sector's financial health, indicating that if the current practices continue, the energy sector could face a $480 million debt by the end of the year.

He added that ENI, a major gas supplier, had reduced its $500 million guarantee to $120 million and threatened to halt supply unless payments are made, which could further destabilize the sector.