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Akoto Osei: ECG can settle debt in 5 years

The Electricity Company of Ghana (ECG) will be able to make good on its outstanding financial obligations within five years if it is prudent with its finances, Dr Anthony Akoto Osei, Member of Parliament for Old Tafo has said.

ECG is said to be saddled with a GHS3.75-billion debt and is due to be given out on concession to a private company for 25 years.

According to Mr Akoto Osei, the state power distributor could recover from its current situation and become profitable, as it once was under the Kufuor regime during the leadership of Mr Adu-Amakwah, where they made more revenue than losses.

But he stated that with the introduction of the Energy Service Tax, which had already brought in GHS400million of income, the ECG could pay all it owed in, at most, five years.

Speaking in an interview on Monday July 4, the minority spokesman on finance said: “Within three to five years, maximum five years, it should be able to clear that debt.”

He said the Ministry of Finance would have to see to the collection of the revenue from the Energy Service Tax and make regular payments to creditors and offer proof of such payment and not be tempted to divert the cash. Mr Akoto Osei said parliament would also need to “seriously monitor” the revenue and payments to ensure the right thing was being done.

Source: radioxyzonline.com

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