Former Energy Minister Boakye Agyarko has strongly criticised former Minister of Power, Dr. Kwabena Donkor, for suggesting that all officials from the New Patriotic Party (NPP) administration involved in the decision to terminate the power purchase agreement with the Ghana Power Generating Company (GPGC), resulting in a $140 million judgement debt, should face an investigation.
Mr Agyarko, in a statement issued on Thursday, October 26, voiced his unhappiness with Dr. Donkor’s remarks, calling them “unfortunate and ill-informed.”
Mr Agyarko emphasised that it was critical to realise that unilaterally cancelling or terminating a contract of this sort was not within his or any minister’s competence.
“I deem the utterances most unfortunate and irresponsible coming from a former Minister who ought to know that it is not within my power or province, or that of any Minister to unilaterally cancel or terminate a contract of this nature.”
The $140 million judgment debt issued to Singaporean corporation Trafigura has put several Ghanaian assets at jeopardy, including the Ghana High Commission building in the United Kingdom, the commissioner’s apartment, the Ghana International Bank facility, and other properties.
Mr Agyarko explained the decision to examine the electricity Purchase Agreements (PPAs), emphasising that “Upon assumption of office, the newly elected NPP government decided to take all necessary actions to contain the cost of power generation and distribution in Ghana.” It became important to assess the execution of the numerous Power Purchase Agreements (PPAs) because if all of them were executed as originally planned, it would result in the generation of surplus energy with its accompanying costs, therefore worsening the power sector’s financial predicament. As a result, the evaluation was intended to assist in reducing potential losses.
“An Inter-Ministerial Committee was set up under the chair of the Energy Commission to review the fiscal and legal implications of Power Purchase Agreements (PPAs) executed by the Electricity Company of Ghana (ECG). The eighteen (18) member committee was chaired by Dr. Alfred Ofosu Ahenkora, Executive Secretary of the Energy Commission. Its report was submitted on 5th April 2019 under ref EC/MOE/17.
“The report was subsequently put before Cabinet for consideration and action. Cabinet directed that the report be further reviewed by the Attorney-General. This was done. Cabinet subsequently gave its approval for the recommendation of the report to be implemented.”
