The Trades Union Congress (TUC) Ghana and the Public Utility Employees Union (PUWU) have opposed any type of non-public sector participation within the Electrical energy Firm of Ghana (ECG).
They warned that privatisation wouldn’t resolve the deep-seated challenges within the vitality sector.
The unions contend that political interference, mismanagement, and poor income assortment—not state possession—are the true culprits behind ECG’s struggles.
“The issues of ECG are well-known, and they aren’t resulting from public possession. They stem from political interference, poor governance, and structural inefficiencies which have been intentionally cultivated over time,” the TUC and PUWU said in a agency response to authorities plans.
The federal government has initiated steps to introduce non-public sector involvement in ECG’s operations, citing inefficiencies and monetary losses.
On January 24, 2025, a seven-member committee was inaugurated to check potential private-sector participation fashions.
Nonetheless, the unions insist that that is merely a pretext for privatization, an strategy they imagine has constantly failed in Ghana.
“Let’s be clear: non-public sector participation is simply privatization in disguise,” the assertion declared.
“We’ve seen this film earlier than, and we all know the way it ends—with job losses, increased tariffs, and compromised nationwide curiosity.”
The Actual Issues: Political Interference and Mismanagement
The unions detailed a number of elementary points plaguing ECG.
They pointed to the truth that Ghana’s vitality sector has been stricken by politically motivated selections, starting from extreme procurement prices to the indiscriminate set up of unregistered meters.
“In simply over a decade, ECG has had seven completely different Managing Administrators, every bringing their very own political agenda, disrupting technique, and stopping long-term planning,” they famous.
“Frequent management adjustments weaken the establishment, making it inconceivable to implement any significant reforms.”
Additionally they highlighted how political interference in procurement has led to the acquisition of substandard gear, which additional undermines ECG’s effectivity.
“How can ECG function effectively when political appointees dictate procurement processes, forcing the corporate to make use of substandard meters and supplies?” the unions questioned.
Moreover, they criticized the federal government’s insistence on buying electrical energy era capability in {dollars} whereas promoting electrical energy in cedis.
“This flawed coverage, coupled with erratic tariff changes, has created a monetary sinkhole for ECG,” they added.
The Privatization Delusion
Drawing on Ghana’s historical past, the TUC and PUWU argued that privatization has by no means yielded the promised advantages.
They cited examples such because the failed Energy Distribution Providers (PDS) deal in 2019 and the privatisation of Ghana Water Restricted, which led to worsened service high quality and was in the end reversed.
“When Ghana Water Restricted was handed over to Aqua Vitens Rand Water Restricted in 2006, the consequence was disastrous. Service supply deteriorated so badly that the contract needed to be terminated in 2011. We is not going to sit again and watch the identical occur to ECG,” the assertion stated.
The unions additionally referenced the case of Ghana Telecom, which was bought to Vodafone in 2008. “Vodafone paid $1 billion for Ghana Telecom, but in just some years, that they had repatriated 5 occasions that quantity in earnings whereas slicing 1000’s of jobs. Who actually benefited?”
They warned that ECG’s privatisation would end in huge job losses and the repatriation of billions in income.
“If we enable a international entity to take over ECG, billions of cedis that ought to be reinvested in Ghana might be despatched overseas as earnings. How does that profit Ghanaians?”
The Means Ahead: Reform, Not Privatisation
Fairly than privatisation, the TUC and PUWU proposed strategic reforms, together with an impartial, stakeholder-driven board for ECG, depoliticisation of administration appointments, and stronger regulatory oversight.
“We want reforms, not privatization. We want management stability at ECG. We want procurement processes that prioritize effectivity over political patronage. And most significantly, we have to defend ECG as a nationwide asset for future generations,” they asserted.
The unions known as for a extra clear and accountable vitality sector governance framework.
“If we don’t cease political interference in ECG, no quantity of privatization will repair the issues. The federal government should concentrate on actual options, not shortcuts that profit just a few on the nation’s expense.”
A Nationwide Asset Price Defending
Concluding their place, the TUC and PUWU reaffirmed their dedication to resisting any type of privatisation of ECG.
“We’re prepared to interact the federal government in constructive dialogue, however we is not going to settle for any transfer that places ECG in non-public arms. The vitality sector is simply too crucial to be sacrificed on the altar of short-term monetary beneficial properties.”
They urged all Ghanaians to face with them in defending ECG as a public entity.
“ECG is a nationwide asset. Its issues will be fastened with the best management and insurance policies. Let’s not promote our future to personal pursuits.”
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