These proposals were meant to seek a revision of the tariff setting methodology and cost structure for power production.

[contextly_sidebar id=”ELH0OYfLj6K0EITmGb8rEqvhUWs1LZrO”]Responding to the claims at a meeting of Ghanaian CEOs, the Energy Minister, Boakye Agyarko, said there were documents available to prove the proposal for reduction was sent as far back as November 2017.

Mr. Agyarko also chided Mr. Mutawakilu for making assumptions on the matter, and said the MP could have simply pushed for him to be summoned to Parliament to provide clarity.

“The Ministry sent a proposal to the PURC on the 17th of November, and he is welcome to see copies of these matters. Indeed, it is within his power as the ranking member to summon me to the Mines and Energy Committee [of Parliament] for such a verification.”

“…We have submitted our proposal and I can say that without the fear of contradiction, because I know that is what the truth is. The PURC responded to the proposals we have sent, and he is welcome to see copies of these because he is an officer of Parliament and an officer of State,” the Minister said.

The government announced that it had recommended the review of electricity tariffs in the country to the PURC.

Government said it is hoping for an average reduction of 13 percent in electricity tariffs for residential consumers, whilst it is targeting a 21 percent drop for industrial consumers.

Reducing electricity tariffs was a major promise from the New Patriotic Party (NPP) ahead of the 2016 elections.

Skepticism from NDC

Members of the Minority in Parliament were not shy in expressing their skepticism of the government’s pledge to reduce electricity tariffs in the budget.

Mr. Mutawakilu previously noted that, the expectation of gas coming on stream to power thermal plants as a means of driving down electricity cost for the ordinary Ghanaian would not materialize.

The Minority Leader in Parliament, Haruna Iddrisu, also said the proposed average reduction of 13 percent in electricity tariffs for residential consumers will ultimately be insignificant when approved.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

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According to him, even though there is a possibility that the tariffs might be reduced for businesses and industries, there may not be a significant reduction for residential users.

Speaking to Citi News‘ Duke Mensah Opoku today [Monday], John Jinapor said: “If you are expecting tariffs, I and any other Ghanaian in their homes should not expect any significant reduction in their electricity tariffs. I don’t want to preempt [the budget], but I see a level of deception just like they did with the three percent VAT and claimed that it would not lead to a significant increase in prices. We can attest that the three percent flat rate is rather having a major impact and is creating problems for industry.”

The President of the Republic, Nana Addo Dankwa Akufo Addo, had hinted over the weekend at the Association of Ghanaian Industries Awards (AGI) dinner, that electricity tariffs will be reviewed downwards soon.

According to Nana Addo, details of the review will be announced by Finance Minister, Ken Ofori-Atta at the 2018 budget reading in Parliament on Wednesday, November 15.

The high electricity tariffs were a major part of the New Patriotic Party (NPP)’s campaign ahead of the 2016 elections, with many of the party’s communicators claiming that electricity cost more than rent.

“I’m glad that businesses are no longer burdened by the erratic power supply that wrecked our nation in recent years. Dumsor, thank God, appears now to be the thing of an unlamented past. Another of the stars of the government, the Energy Minister, Boakye Agyarko, is to be commended for the sterling work he’s been doing so far on this matter,” the President said.

“Furthermore, the government is moving to set in motion the process for the review of electricity tariffs and in the budget to be read by the brilliant Minister of Finance, Ken Ofori-Atta on Wednesday, I’m sure we will hear some good news in this regard.”

However, Jinapor believes that the economic challenges faced by the country this year have severely limited government’s spending power, and so a 25 percent decrease in the tariffs as was being speculated in the media was unrealistic.

“I’ve made it clear that looking at the indicators and doing the computation, I don’t believe that government can give the residential users any significant reduction. I’ve even heard some government appointees indicate that they are even going to give a 25% reduction. Even as we speak, government has not paid a cedi for the gas that we’ve consumed this year. From all indications, we are likely to incur 1 billion cedis additional debt. So even as government attempts to pay what they describe as a legacy debt of about 10 billion, we are not solving the problem. We are just scratching the surface because you are piling new and fresh debt and that is a major concern,” John Jinapor added.

“What I expect government to do is to be transparent and honest and come clean on all the challenges confronting the energy sector. The crude oil prices have increased by about 10 dollars this year alone, and the cedi has depreciated, you can’t pay that and you are promising the ordinary consumer that you are going to reduce their tariff and you are even claiming that you can do a 25 percent reduction. What they intend doing is just to come out with artificial issues and deceive us.”

The Energy Minister, Boakye Agyarko, had hinted of plans to review taxes on electricity to cushion Ghanaians in the budget back in September.

“On the budget, it is our faithful expectation that we should be able to reduce tariffs. We are getting a lot of corporation in so doing. So we believe that through this budget to the end of the year, we should be able to start bringing the prices down,” Agyarko said at the time.

Mr. Agyarko explained that, the government is working to stabilize the price by reducing waste in the power generation and distribution systems.

“When we set out, the commitment was that, we need to correct two things. One was stabilizing power, so that we get the product that we are paying for. I believe that we have largely succeeded in stabilizing the supply of power.”

However, the Minority expressed doubt  about the government’s assurances, stating that the expectation of gas coming on stream to power thermal plants as a means of driving down electricity cost for the ordinary Ghanaian would not materialize.

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By: Edwin Kwakofi/citifmonline.com/Ghana

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This he says, is evident in the submissions of the Energy Minister, Boakye Agyarko, which he says sought to push for a review of the deal through parliament rather a rescission.

[contextly_sidebar id=”9Q08daP049fKtmSgVs7O43XG1Zo84WVu”]The Mines and Energy Committee of Parliament is currently considering a motion for rescission of the AMERI deal filed by KT Hammond.

Speaking to Citi News’ Duke Mensah Opoku, the Damongo MP said the responses from the Minister vindicates the position of the Minority, that the motion for rescission was a lost cause.

“We feel vindicated. The executive arm of government has abandoned K.T Hammond and his motion. Instead of recession, they are looking for a review. They are dancing straight to what they said.”

The Energy Minister, Boakye Agyarko on Tuesday declared his support for a  review of the terms of the controversial AMERI power deal.

Testifying before the Mines and Energy Committee of Parliament, Boakye Agyarko said immediately after the ratification of the deal by Parliament in August 2015, some already agreed terms were changed which should have gone back to Parliament.

He thus supported any move by Parliament to review the decision it took two years ago.

Making his case before Parliament, Mr. Agyarko said: “the key highlights if I may determine or if it is within my province to determine, will be the choices that we made. I think whether we buy outright, whether we lease or whether we go into a build operate and transfer (BOT), of interest also is the question of pricing, and the quality of the financial and economic analysis that is weighed in this matter of such gravity. The nation’s money of over 500 million dollars is being put in an asset. One would have wished that it will attract the highest quality of investigation in terms of its financial and economic analysis. The synopsis also tracks a number of flip-flops.”

“In my mind, if Parliament approves or ratifies a document, and there are major changes to the document, It stands to reason that it goes back to Parliament for a review, otherwise Parliament will approve a document only to find out that changes, amendments have been made without their consent . That is something that must lend itself to investigation” he argued.

Withdraw AMERI deal – K.T Hammond

Although the Energy Minister backs calls for the deal to be reviewed,  the Adansi Asokwa Member of Parliament, K. T Hammond, who was the ranking member of the Energy Committee of Parliament when the deal was signed, filed an urgent motion in Parliament to have the deal rescinded.

According to him, this was because of fresh information he had received concerning the agreement which showed that the deal was fraudulent. K.T Hammond revealed on Eyewitness News in August that, Ghana stands to lose that $150 million to AMERI in the deal.

Cancelling AMERI deal will be disservice to Ghana – Donkor

The former Minister of Power , Kwabena Donkor, has however warned that investments into Ghana’s economy will be greatly affected if the AMERI power deal is canceled.

“The impact on future investment, if approvals by parliament can be rescinded, when a new government comes in with a new parliament because they have the numbers they rescind it, what will be the impact on Ghana’s investment climate?” he asked.

“Already, for developing countries, there is a political risk of investment, and therefore we pay a premium for investment because of perceived political risk. If we aggravate this by rescinding decisions properly approved, because one government is in power, and has numbers to push it through, it will be short-term and it will not be in the national interest, and in my opinion, it will be misleading, I think a rescission will be a disservice to Ghana,” he added.

The deal received parliamentary approval on 20th March, 2015, but subsequent details suggested that, the government may have been short-changed by AMERI as they presented an overpriced budget.

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By: Marian Ansah & Duke Mensah Opoku/citifmonline.com/Ghana

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Testifying before the Mines and Energy Committee of Parliament, Boakye Agyarko said immediately after the ratification of the deal by Parliament in August 2015, some already agreed terms were changed which should have gone back to Parliament.

He thus supports any move by Parliament to review the decision it took two years ago.

[contextly_sidebar id=”RTKO37IbzaqEOx0V8yCOe3CRyL9WOwiq”]Making his case before Parliament, Mr. Agyarko said: “the key highlights if I may determine or if it is within my province to determine, will be the choices that we made. I think whether we buy outright, whether we lease or whether we go into a build operate and transfer (BOT), of interest also is the question of pricing, and the quality of the financial and economic analysis that is weighed in this matter of such gravity. The nation’s money of over 500 million dollars is being put in an asset. One would have wished that it will attract the highest quality of investigation in terms of its financial and economic analysis. The synopsis also tracks a number of flip-flops.”

“In my mind, if Parliament approves or ratifies a document, and there are major changes to the document, It stands to reason that it goes back to Parliament for a review, otherwise Parliament will approve a document only to find out that changes, amendments have been made without their consent . That is something that must lend itself to investigation” he argued.

AMERI in its agreement with Government dated February 10th, 2015, reportedly charged Ghana significantly higher than what it was charged by the Turkish registered company, PPR, which financed and executed the project.

The Turkish firm pegged the total cost of the project at a maximum of $360 million.

However, in the Build Operate Own Transfer (BOOT) agreement signed between the government and AMERI, the deal was pegged at a minimum of 510 million dollars leaving Ameri with a commission of $150 million.

The company was to provide Ghana with 300MW of energy to help improve the country’s energy situation.

Withdraw AMERI deal – K.T Hammond

Although the Energy Minister backs calls for the deal to be reviewed,  the Adansi Asokwa Member of Parliament, K. T Hammond, who was the ranking member of the Energy Committee of Parliament when the deal was signed, filed an urgent motion in Parliament to have the deal rescinded.

According to him, this was because of fresh information he had received concerning the agreement which showed that the deal was fraudulent. K.T Hammond revealed on Eyewitness News in August that, Ghana stands to lose that $150 million to AMERI in the deal.

Cancelling AMERI deal will be disservice to Ghana – Donkor

The former Minister of Power , Kwabena Donkor, has however warned that investments into Ghana’s economy will be greatly affected if the AMERI power deal is canceled.

“The impact on future investment, if approvals by parliament can be rescinded, when a new government comes in with a new parliament because they have the numbers they rescind it, what will be the impact on Ghana’s investment climate?” he asked.

“Already, for developing countries, there is a political risk of investment, and therefore we pay a premium for investment because of perceived political risk. If we aggravate this by rescinding decisions properly approved, because one government is in power, and has numbers to push it through, it will be short-term and it will not be in the national interest, and in my opinion, it will be misleading, I think a rescission will be a disservice to Ghana,” he added.

The deal received parliamentary approval on 20th March, 2015, but subsequent details suggested that, the government may have been short-changed by AMERI as they presented an overpriced budget.

Parliament has been reconsidering the deal to possibly reverse it if evidence of the state being shortchanged is found.

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By: Marian Ansah & Duke Mensah Opoku/citifmonline.com/Ghana

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According to the ministry, this will ensure that all safety and health standards at fuel stations are adhered to, to prevent explosions.

Speaking to the media on the sidelines of an event to inaugurate the new board of the Ghana National Gas Company Limited, Sector Minister, Boakye Agyarko, said the safety auditors will also make sure all safety equipment are in place.

[contextly_sidebar id=”keqBbhGKj14raiG8Rn81faejoK6lPVQK”]“This explosion is one too many and we need to bring it to a screeching halt. There are a lot of things that we are going to do…we will enforce all safety and health standards. NPA, which is the regulator, is now going to be allowed to hire 200 auditors who will go from station to station to make sure that safety standards are complied with, that safety equipment are all in place,” he added.

The Energy Minister also called for the introduction of the gas re-circulation policy which has been put on hold following agitations from stakeholders.

“…We have to come to the sensible and logical position of having bottling plants well under control, both technical and safety, so that they rather do the filling and bring to us in our homes. At the end of the day, what are citizens looking for, gas in their cylinders. If it’s done offsite under the strictest of safety conditions, I believe we will spare this nation the harrowing agony,” he added.

Fuel explosions in Ghana

According to the Finer Newspaper, over 250 people have perished in the last ten years in explosions recorded at various petrol/diesel and gas stations across the country.

Last Saturday, seven people died  whereas 132 others sustained varied degrees of injury following an explosion at a gas filling station at Atomic Junction in Accra.

Government has subsequently promised to enforce the necessary laws regulating the sector.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
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According to the Energy Minister, Boakye Agyarko, the government is willing to engage workers of ECG and their workers Union, the Public Utilities Workers Union (PUWU) to iron out their issues.

[contextly_sidebar id=”sBg9ozS0h54v3l2Kbo6MTPhm0OsQhb9C”]He however chided PUWU for bypassing the government and resorting to the media to voice their concerns.

“If there is an explanation you don’t understand, you come back to the table. You don’t go to the press. If you are sitting in a classroom and the teacher is teaching something you don’t understand, you ask the teacher for further and better particulars.”

PUWU’s latest demand from the government is proof that ECG workers will be retained by the concessionaires who will take over in September 2018.

This followed a sit-down strike by ECG staff, who are requesting severance package for workers who could be laid off after the company is privatized.

This was the latest agitation as a result of fears workers will lose their jobs following the Power Compact signed with the United States of America’s Compact II programme.

Speaking to the media, Boakye Agyarko said the government would deal with retention issues of the workers, but insists the approach of PUWU to get the issues resolved so far is wrong.

“Whatever entitlements and benefits they have accrued as workers under ECG shall not be tampered with, because they have moved to a new company. That was the guarantee we sought to give them. Nothing more, nothing less,” he stated.

The Employment Ministry’s role in all this will be to handle the worker dispute issues as the Energy Ministry’s purview is energy, Mr. Agyarko noted.

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By: Duke Mensah Opoku/citifmonline.com/Ghana

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The Public Utility Workers Union (PUWU) on Tuesday picketed at the premises of the Trades Union Congress (TUC), demanding for severance pay for ECG staff before they participate in the privatization of ECG under the Millennium Power Compact Two programme.

[contextly_sidebar id=”kTqvws7444NeJQBxOPL2Vuw9v4aspRBr”]But reacting to the demands at a press conference, Mr. Agyarko insisted that, workers of ECG who want their severance packages will not be prevented, but must leave the company after receiving it.

“…If you decide to leave ECG, then you will be paid your severance, but you should not have the expectation or guarantee that the new company will take you on. You have made a decision to sever your relations with ECG, and it should not put you in faithful expectation that going forward you have a job with the new company. So it is opened, all the ECG workers who want to leave and not join the new company are at liberty to do so and their severance so arranged.”

“But it is not going to be a collective bargaining situation where all 6,500 ECG workers are paid the severance and then transferred to the new company. You are at liberty to transfer yourself to the new company and carry with you all the benefits from ECG and continue accruing new benefits. You are equally at liberty to say that I want to wash my hands off ECG and go my own way,” he added.

Customers stranded as ECG workers embark on sit down strike

Customers of the ECG, were stranded on Wednesday at various offices of the company, following a two-hour sit down strike by the staff.

They staff had embarked on the move in demand of their severance packages with ECG as government is working on finalizing efforts to privatize operations of ECG.

The inscription “CLOSED” was boldly shown at the entrance to the offices, as customers were turned away.

One customer, Paul Donkor, who had come to pay his electricity bills, said “they [workers] told me to come back at 10:00am. I wanted to come early to leave for work, but now, I have to go to work and return tomorrow. Let’s pray that they are able to settle whatever issue it is, so I can successfully pay my bill when I return tomorrow [Thursday],” he added.

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By: Lawrence Segbefia/citifmonline.com/Ghana

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Addressing members of the New Patriotic Party (NPP) at a rally during the party’s National Delegates Conference at Cape Coast on Saturday, Boakye Agyarko said the reduction is in fulfillment of a promise made by the Akufo-Addo government.

[contextly_sidebar id=”CTiZZBDnTn06j6FFmepBpGVKQiDDqPOa”]“Have patience with us, we have promised that electricity tariffs will reduce. Just as we said dumsor will be over, I’m assuring you that, very soon when you see your electricity bills, you will know that when NPP promises it honours it,” he added.

The NPP prior to the December 2016 general elections accused the Mahama government of ripping Ghanaians off with high utility bills and promised to reduce it when it comes into power.

They also assured to put an end to the erratic power cut which affected the country in the past.

Mr. Agyarko at the rally assured that “the days of dumsor will not return.”

He said although there have been few hitches at the end of the Electricity Company of Ghana (ECG), “before the end of this year, the lights will always be on.”

“You will then know that we brought on board good motives and knowledge and we will continue with such trend so that Ghanaians will be comfortable,” he added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

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The personnel were on a mission to retrieve evidence that suggests the former minister had caused financial loss to the state as a result of his involvement in the controversial AMERI deal.

[contextly_sidebar id=”MXD5QKJHXsASTlQvabGaxndubvPwJsBi”]Kwabena Donkor, who confirmed the incident to Citi News, said the personnel arrived at his home few minutes after 6:00am today [Monday].

“It was few minutes after 6…. There were 4 of them led by an Assistant Superintended of Police. They showed me a warrant obtained from a circuit court and said I was a suspect for having caused financial loss to the state and so they should come and search my premises, retrieve my laptop and other electronic devices.”

“The officers were very professional and they were here for about 2 hours… I said I have nothing to hide so they should go ahead. They searched the whole house. They took away my laptop and some pen drives,” Kwabena Donkor said.

He expressed shock that he had not been notified prior to the Monday morning search that he was a suspect in any criminal case.

“I read for the first time on the warrant that I was the suspect for causing financial loss. Nobody has cautioned me, nobody has tried me. I’ve never been told anywhere that I’ve caused financial loss. The officers said they were looking for documentations on AMERI so they were very specific,” he said.

The John Mahama administration in 2015, agreed to rent the 300MW of emergency power from AMERI at the peak of the country’s power crisis. The decision was taken when Mr. Donkor was Power Minister.

The cost of the deal was $510m, and received parliamentary approval on 20th March, 2015. However, it emerged that the country had been shortchanged by the company, acccording to the NPP government.

The reports said the government had paid in excess of $150m, but state officials of the Mahama government disagreed.

The New Patriotic Party government which assumed office said it would look into the matter.

The Energy Minister, Boakye Agyarko, later constituted a committee led by lawyer Philip Addison to investigate the matter that ended in controversy, as it emerged that the committee had seemingly entangled itself in a possible conflict of interest position by accepting sponsorship from AMERI to travel and stay in Dubai for some days as it investigated them [AMERI].

Investigations are still ongoing.

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By: Duke Mensah Opoku & Jonas Nyabor/citifmonline.com/Ghana

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Following the public uproar over BOST’s sale of 5 million litres of contaminated fuel to two unlicensed companies, Movepiina and Zup Oil, which were allegedly set up few days before the sale, the Energy Minister, Boakye Agyarko at a press conference cleared the Managing Director of BOST, Alfred Obeng Boateng of wrongdoing citing a Bureau of National Investigation (BNI) and National Security report.

[contextly_sidebar id=”H8jyOchbO9S0FwAcgbCACJY4nSHLx1f4″]Government further challenged persons who claimed the contaminated fuel was being sold on the Ghanaian market to provide evidence.

Meanwhile, speaking on the Citi Breakfast Show on Tuesday, Executive Director of COPEC, Duncan Amoah, said he can lead the BNI to the illegal facilities.

“The real truth is being covered. The real substance of the matter is shielded from public discussion as to whether the product indeed ended up in the market. I can put on record that the last time we did some checks together with other petroleum personalities including Ben Boakye of ACEP, here in Tema–it was found that some of the BOST products were sitting in some tank yards; illegal facilities in Tema and that they were afraid to sell.”

“You push further to security operatives, you are told that indeed they can go and do the swoop but even when they are done, would the state be ready to prosecute? Because they have had several instances where NPA will go to arrest some of these illegal fuel dealers, by close of day some big people in some big places call that they should release those trucks. It’s a mafia.  I can put this on record and I can personally lead BNI today, if they want to get to the bottom of this. They know all the facts on the ground. Unfortunately there are so called bigger men in the space,” he added.

Ghana loses GHc800 million over illegal fuel operations

Reports suggest more than GH¢800 million cedis that should accrue to the state as revenue is lost every year through the operation of these illegal operators.

NPA helpless in contaminated fuel saga                                                                              

But it seems the NPA is helpless in the fight to clamp down on unlicensed fuel depots.

Although the NPA said it is taking steps to ensure these depots acquire licenses to operate, Duncan Amoah believes it is deliberately dragging its feet.

Speaking on the Citi Breakfast Show, the Acting Chief Executive of NPA, Hassan Tampoli, said activities of such illegal fuel operators is not new.

“…We are aware but as to how we will go about it, I think that is an institutional detail I don’t want to put out there. This people have been in operations for many years and I’m saying that within five months we want to take action against them. I think we should be commended.”

“This is just something we do on a regular basis. When we get the information, we set out our people to go and gather intelligence. We’ve been able to identify some areas and we are still identifying some more. But we need to get all of them, put them together then we get the necessary arrangements in place to be able to deal with those situations,” Mr. Tampoli added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
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