The investigation is to ascertain whether the GWCL and Ghanaians were not short-changed in the deal.

[contextly_sidebar id=”dGa50ezlWZN9dhGOEq9rxzfGgkvpiZ9w”]According to PUWU, the project, which was signed between the Ghana Water Company and an engineering firm; Messrs Befassa has “seriously weakened the capacity of GWCL to deliver on its mandate.”

Explaining the current challenges the company is battling with due to this project, PUWU explained in a statement that “GWCL buys water from the desalination plant at GHC 6.50 per cubic meter, and sells it to customers at the PURC approved tariff of GHC 1.50”, leaving a “GHC 5.00 loss” for the GWCL.

It added that the “GWCL pays the invoice amount in US Dollars even though it sells the water in Ghana cedis, thereby accumulating more losses as a result of exchange differentials.”

Another strange provision in the contract, according to PUWU “is the price indexation which is tied to local inflation although the invoice and payment to the private operator is in the United States Dollars.”

Citing more examples to support its claim, PUWU recalled that “in 2015, GWCL paid to Befassa a total of US $ 1.8 million, leaving an outstanding indebtedness of US$ 13.9 million. In 2016, even though GWCL was making negative cash flow of about GHC 7.2 million a month, the company was compelled to pay Befessa a total of US $ 23.7 million, leaving an outstanding indebtedness of US $ 8.1 million. As at the end of September 2017 , GWCL had paid a total of US$ 12.9 million to Befessa , leaving an outstanding indebtedness of US $ 7.2 million. The company continued to make a net negative cash flow of an average of GHC 6.02 million per month.”

These expenditures according to PUWU, has left GWCL in a “precarious position” affecting its cash flow operations and expansion works.

According to PUWU, “there is no doubt that this agreement between GWCL and Messrs Befessa is not only obnoxious, but also “beats common business sense as it appears to be a case of a giant conspiracy between foreign investors and their local collaborators and some public officials, with political influence, to loot the public entity like GWCL and share the proceeds among themselves under the guise of a private sector investment or private public partnership.”

PUWU has also called on government to “take over the financial commitments and transaction losses suffered by GWCL” in the purchase and sale of water from the desalination plant, to save the company from potential collapse.

Background

In 2011, the Government of Ghana awarded a contract to Befesa Desalination Development Ghana for the establishment of the sea water treatment plant to produce clean water, which will be channeled into the pipelines of GWCL.

Messrs Befesa Limited, an engineering firm, was contracted by the government to build the desalination plant, operate to defray its cost, and hand over to the GWCL after 25 years.

The project was executed by Abengoa, a Spanish company, and Sojitz Corporation, Japan’s largest importer of rare earth metals.

The two hold a 94% equity in the project. The plant was designed, constructed and is being operated by Befesa Desalination Developments Ghana, a joint venture of Abengoa Water Investments Ghana, Daye Water Investment (Ghana), and their local partner Hydrocol.

What were the issues?

Some industry insiders had told Citi News that there was no need to have established the Teshie Water Desalination plant because around the same time, the Kpong Water Treatment plant was being expanded to supply over 40 million gallons of water to the Accra East Region.

It was estimated that at its peak, the Kpong Plant could produce about 80 million gallons of water per day, and that could take care of consumers in the catchment area. The retrofitting of the Kpong Plant cost the taxpayer about $273 million.

However, a strong case was made for the Teshie Desalination plant with reference to the fact that the demand for the catchment area stood at 160 million gallons of water a day. Therefore, the government gave the project the needed push to see its execution.

Resistance to the project

The Teshie and Nungua areas have had water challenges for years and because of inadequate water volumes, the Ghana Water Company Limited for years undertook water rationing.

The introduction of the Desalination plant was to ensure 13 million gallons of water was produced per day, to eliminate rationing and ensure consumers got quality and affordable water.

But a bigger problem persisted for GWCL, which is the off-taker under the Water Purchasing Agreement between Ghana and Befesa.

A consolidation of all the costs meant that, Ghana Water was buying the water at about GHc 6.5 per cubic meter, and selling at the regulated PURC rate of about GHc 1.5 per cubic meter.

This arrangement meant that the GWCL was losing about GHc 5 for every cubic meter of water sold from the Teshie Desalination Plant.

Citi News’ checks had also indicated that the  GWCL was losing GHc 6 million monthly by operating the Desalination Plant.

The checks showed that the GWCL was making payments of GHc 8 million a month to the financiers of the project, although it made only GHc 2 million by supplying treated water from the plant.

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By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post Investigate gov’t officials over ‘unprofitable’ desalination plant – PUWU appeared first on Citi 97.3 FM - Relevant Radio. Always.

According the court, presided over by Justice Lorrenda Owusu, her decision was based on the governing principle of balance of convenience.

[contextly_sidebar id=”RWhrPd84GEFTXbEsNMMar53Iji9Qv6XR”]She further explained that, the state had more to lose if the injunction was granted, and the final judgment of the substantive case went in their favor.

Justice Owusu advised both the workers of ECG and government, to continue negotiations in order to reach an amicable agreement.

Background

PUWU dragged ECG, the Attorney-General and the Millennium Development Authority (MiDA) to court in on October 3, 2017 over the privatization of ECG.

They have demanded for severance packages for ECG workers because of the privatization move.

PUWU in its suit also sought a perpetual injunction to restrain the defendants, their assigns and privies from continuing with the Compact Agreement between the government of Ghana and the Millennium Challenge Corporation (MCC) on August 5, 2014 for the reform of the electricity distribution sector of Ghana by, among other issues, appointing a concessionaire to take over the distribution of electricity from the ECG and related agreements.

PUWU had started agitations in this regard in September, expressing fears that their members will lose their jobs following the Power Compact signed with the United States of America under the Millennium Challenge Corporation (MCC) Power Compact II programme.

They contended that, discussions that went into negotiations for the sale of ECG, did not factor the declaration of redundancy, despite the content of Section 65 of the Labour Act.

Meanwhile the substantive case is still pending.

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By: Fred Djabanor/citifmonline.com/Ghana

The post PUWU’s injunction suit against ECG privatization dismissed appeared first on Citi 97.3 FM - Relevant Radio. Always.

The court set the date after lawyers for both the applicants and defendants, argued their case on why the court should put the process on hold or otherwise.

[contextly_sidebar id=”AK9BrNQV7d5UXQt9wZlJ8RD9TqES0va0″]Over 1000 workers of ECG, led by the Public Utilities Workers Union (PUWU), have sued the government over moves to hand over the operations of the company to a concessionaire without any redundancy package for them.

Concerns with the ongoing process were raised by lawyers for PUWU at the last court hearing on October 13.

PUWU had started agitations in this regard in September, expressing fears that their members will lose their jobs following the Power Compact signed with the United States of America under the Millennium Challenge Corporation (MCC) Power Compact II programme.

They contended that, discussions that went into negotiations for the sale of ECG, did not factor the declaration of redundancy, despite the content of Section 65 of the Labour Act.

This section of the Labour Act indicates that, where “an arrangement or amalgamation causes severance of the legal relationship of a worker and employer as it existed immediately before the close down, arrangement or amalgamation; and as a result of and in addition to the severance that worker becomes unemployed or suffers any diminution in the terms and conditions of employment, the worker is entitled to be paid by the undertaking at which that worker was immediately employed prior to the close down, arrangement or amalgamation, compensation, in this section referred to as redundancy pay.”

In their suit, the workers are also seeking a perpetual injunction to restrain the defendants, their assigns and privies from continuing with the Compact Agreement.

This compact was signed on August 5, 2014, for to reform the electricity distribution sector of Ghana by, among other issues, appointing a concessionaire to take over the distribution of electricity from ECG and related agreements.

The Ghana Power Compact will provide Ghana with a grant of US$498,200,000 to improve the performance of the power sector.

About US$350 million of the grant, is being invested in ECG to make the country’s power distributor operationally and financially efficient.

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By: Fred Djabanor/citifmonline.com/Ghana

The post ECG privatization: Ruling on PUWU suit set for Oct. 31 appeared first on Citi 97.3 FM - Relevant Radio. Always.

This follows concerns raised in court by lawyers for PUWU, over the ongoing bidding processes despite an interlocutory injunction application before the court, praying the court to halt the process.

[contextly_sidebar id=”HlwSxIxTKDEGFS82mNJVQABuP0t3KCGs”]The plaintiffs, who are members of the Public Utilities Workers Union (PUWU), filed the suit demanding, among other things, an injunction to halt the Compact between Ghana and the Millennium Challenge Corporation (MCC).

The Judge, Justice Lorrenda Owusu, after hearing the concerns of the applicants, advised the government to take note of the effects of their actions with the interlocutory injunction application still pending.

PUWU sued the government over moves to hand over the operations of the company to a concessionaire without any redundancy package for them.

In their suit, they are seeking a perpetual injunction to restrain the defendants, their assigns and privies from continuing with the Compact Agreement between the government of Ghana and the MCC.

The compact was signed in August 2014, geared towards the reform of the electricity distribution sector of Ghana, by among other issues, appointing a concessionaire to take over the distribution of electricity from the ECG and related agreements.

The Ghana Power Compact will provide Ghana with a grant of US$498,200,000 to improve the performance of the power sector.

Severance concerns

The ECG workers prayed the court, to among others, declare the decision by the Minister of Energy to conduct redundancy negotiations with individual employees of the ECG illegal, and a gross violation of Section 65 of the Labour Act, 2005 (Act 651).

They contended that, discussions that went into negotiations for the sale of ECG, did not factor the declaration of redundancy, despite the content of Section 65 of the Labour Act.

This section indicates that, where “an arrangement or amalgamation causes severance of the legal relationship of a worker and employer as it existed immediately before the close down, arrangement or amalgamation; and as a result of and in addition to the severance that worker becomes unemployed or suffers any diminution in the terms and conditions of employment, the worker is entitled to be paid by the undertaking at which that worker was immediately employed prior to the close down, arrangement or amalgamation, compensation, in this section referred to as redundancy pay.”

The court adjourned the case to October 19, to allow defendants file their affidavits in opposition, and for the interlocutory injunction application to be moved on the said date.

–

By: Fred Djabanor/citifmonline.com/Ghana

The post PUWU suit: Judge cautions MiDA over ECG privatization appeared first on Citi 97.3 FM - Relevant Radio. Always.

PUWU has sued ECG, the Attorney-General and the Millennium Development Authority (MiDA), over the dispute on the need for the payment of redundancy package to ECG workers.

[contextly_sidebar id=”EQYTjKmujcU5OatWUM5UTdXKJNfps3WR”]PUWU had started agitations in this regard in September, due to fears that workers will lose their jobs following the Power Compact signed with the United States of America under the Millennium Challenge Corporation (MCC) Power Compact II programme.

The lawsuit has one other plaintiff, one Benedict Kanose, an employee of the ECG.

PUWU in a writ filed at the Accra High Court argued that the decision to cede ECG to a concessionaire constituted a severance of the ECG workers’ employment.

It contended that discussions that went into negotiations for the sale of ECG did not factor the declaration of redundancy, despite the content of Section 65 of the Labour Act, 2005 (Act 651).

The section indicates that, where “an arrangement or amalgamation causes severance of the legal relationship of a worker and employer as it existed immediately before the close down, arrangement or amalgamation; and as a result of and in addition to the severance that worker becomes unemployed or suffers any diminution in the terms and conditions of employment, the worker is entitled to be paid by the undertaking at which that worker was immediately employed prior to the close down, arrangement or amalgamation, compensation, in this section referred to as redundancy pay.”

Thus PUWU is seeking a declaration that “the purported ‘grandfathering, ie, sending workers of ECG including plaintiffs [PUWU members] on permanent transfer without paying a redundancy pay of the 1^st defendant’s [Benedict Kanose] employees including plaintiffs which the minister [Boakye Agyarko] declared to be the government’s approach… will sever the employment relationship between plaintiffs and ECG,” the writ said

They are also seeking an order directed at the defendants to “comply with the provisions of Act 651, and go through the proper redundancy process as laid down in Ghana’s laws and pay plaintiffs redundancy pay (severance package) in accordance with the stipulation of the law.”

They also want an injunction to halt the Compact between Ghana and the MCC.

The Ghana Power Compact will provide Ghana with a grant of US$498,200,000 to improve the performance of the power sector.

About US$350 million of the grant is being invested in ECG to make the country’s power distributor operationally and financially more efficient.

–

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

The post PUWU drags ECG, MiDA to court over severance package appeared first on Citi 97.3 FM - Relevant Radio. Always.

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

[contextly_sidebar id=”FukX2R2f8Tyt8K8Iu4dKOglfOED8JWKZ”]The Energy Minister, Boakye Agyarko responded to this by extending an invitation to the protesting workers who wanted their severance packages but warned them that they will lose their jobs if their demands are met.

The Minister said there was not going to be a collective bargaining situation where all 6,500 ECG workers were paid the severance and then transferred to the new company.

The government has consistently tried to allay the fears of workers following the Power Compact signed with the United States of America, acting through the Millennium Challenge Corporation (MCC).

But speaking to on Eyewitness News, the Deputy General Secretary of PUWU, Richard Nyaaba said PUWU will continue its agitation for what is due to ECG workers as the government so far has not shown any tangible commitment towards the retention of workers after the privatization.

“…Where is the proof? Up till now, we have not seen any document anywhere. So should we just be sitting there because a politician says our job secured and for that matter, we should not be worried, But tomorrow, we are asked to go away.”

He stressed that the workers are engaged legally by the Electricity Company of Ghana which “will no longer exist therefore our legal relationship with the Electricity Company of Ghana ceases come September 2018.”

“Appart from the 20 or so percent that will be left at the head office to stay with the mother ECG, that will monitor and supervise the concessioner, everybody will have to go off,” Mr. Nyaaba added.

The Ghana Power Compact will provide Ghana with a grant of US$498,200,000 to improve the performance of the power sector.

About US$350 million of the grant is being invested in ECG to make the country’s power distributor operationally and financially more efficient.

–

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

The post Give concrete assurances or protests will continue – PUWU to gov’t appeared first on Citi 97.3 FM - Relevant Radio. Always.

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

The post Prepare to exit ECG after redundancy pay – Boakye Agyarko appeared first on Citi 97.3 FM - Relevant Radio. Always.

The strike action comes after a demand for payment of redundancy pay by the Public Utility Workers Union (PUWU), for all workers of ECG before the privatization.

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.

Workers of ECG have over the years raised concerns about the privatization of the company in an agreement signed by the Government with the Millennium Challenge Corporation (MCC) under the Power Compact II.

The Public Utility Workers Union (PUWU) earlier in the week picketed at the premises of the Trades Union Congress in Accra demanding the payment of redundancy packages for all workers of ECG.

Speaking to Citi Business News during the picketing in Accra on Tuesday, the General Secretary of PUWU, Michael Adumatta Nyantakyi, stated that the union will go to court if their grievances are not addressed by government.

“This action is being done to draw government’s attention to our issue that we think that the payment of severance to staff of ECG should be considered under the ongoing arrangement where they want to give out the company to a private operator. And from what we have read, what they are planning to do is that they will move the staff from ECG to go and work for the private operator, and we think that under the labour law, such arrangement should require the payment of what the law calls redundancy pay.”

“We want the government to know that it is something they cannot run away from. If they are embarking on this activity, then they must also respect the rights of the workers and also do the right thing,” he added.

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By: Loretta Timah/citifmonline.com

The post Customers stranded as ECG workers embark on sit down strike [Photos] appeared first on Citi 97.3 FM - Relevant Radio. Always.

The government of Ghana has entered into an agreement with the Millennium Challenge Corporation (MCC) under the Power Compact Two to privatize the operations of the ECG.

The process has stalled several times as the Trades Union Congress (TUC), has expressed some concerns about potential job losses.

Speaking to Citi Business News during a picketing at the premises of the Trades Union Congress in Accra on Tuesday, the General Secretary of PUWU, Michael Adumatta Nyantakyi, stated that the union will go to court if their grievances are not addressed by government.

“This action is being done to draw government’s attention to our issue that we think that the payment of severance to staff of ECG should be considered under the ongoing arrangement where they want to give out the company to a private operator. And from what we have read, what they are planning to do is that they will move the staff from ECG to go and work for the private operator, and we think that under the labour law, such arrangement should require the payment of what the law calls redundancy pay.”

“We want the government to know that it is something they cannot run away from. If they are embarking on this activity, then they must also respect the rights of the workers and also do the right thing,” he added.

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By: Lawrence Segbefia/citifmonline.com/Ghana

The post PUWU staff picket to demand redundancy pay for ECG workers appeared first on Citi 97.3 FM - Relevant Radio. Always.

PUWU said the workers must only return to work if the chiefs and people of Somanya assure them of their safety and also apologize for their violent conduct in a written letter.

[contextly_sidebar id=”magn9Zs37NlXJsz0Zn5Lyv07rJ3nTKsT”]The General Secretary of PUWU, Michael Adummatta Nyantakyi, in a statement copied to citifmonline.com, said the Union is disgusted about the silence of the Energy Minister, Boakye Agyarko on the matter.

“ECG staff at Somanya have been advised to withdraw from their duty post due to the threat of further attacks and the presence of imminent and serious danger to their lives, safety and health in accordance with Section 119 of the Labour Act, Act 2003.

The staff will only return when assurances of safety have been received from the chiefs and people of Somanya, and apology rendered for the unfortunate incident which took place.”

“The meeting took notice of the fact that, the Minister of Energy has failed or refused to condemn the mob attack on the ECG office in his native land more than a week after the incident.”

Hundreds of angry residents in the town took over the offices of the Electricity Company of Ghana, and vandalized parts of the building, after demonstrating over what they describe as outrageous electricity bills.

Following the incident, the police arrested one lead suspect which angered the residents and caused them to launch an attack on the police, vandalizing its property and burning one of its vehicles.

Although the police have made some more arrests in connection with the incident, PUWU insists ECG workers in the area are not safe.

While accusing the Minister of Energy, Boakye Agyarko for fueling the attack with his recent statement which criticized the ECG’s billing system, it commended the Police for swiftly arresting persons behind the attack, noting that the action will serve as a deterrent to others who may want to use crude methods such as mob attacks on ECG staff to have their complaints addressed.

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By: Jonas Nyabor/citifmonline.com/Ghana

The post PUWU directs Somanya ECG workers to vacate post appeared first on Citi 97.3 FM - Relevant Radio. Always.