President John Dramani Mahama has expressed concerns over the mismanagement of revenues generated from the Energy Sector Levy Act (ESLA).
According to him, the funds were not utilised for their intended purpose.
He said this during a meeting with Independent Power Producers (IPPs) in Accra on Monday, January 13.
Addressing the sector players, President Mahama revealed that instead of addressing the core objective of the levy-paying off accumulated energy sector debts, the funds were diverted for other uses.
“After we passed it and left office in December the new government came in and they had other ideas and other ways of trying to do things. But unfortunately one of the outcomes was that ESLA was not used for its intended purpose. Revenues of ESLA were mismanaged. So what should have gone to pay down a lot of the debts that has accumulated today was used for other purposes,” he added
The ESLA, introduced in 2015 during President Mahama’s previous administration, was designed to tackle the growing debts in Ghana’s energy sector, stabilise the industry, and ensure reliable power supply.
However, the alleged diversion of funds has exacerbated the challenges in the sector, particularly with IPPs still grappling with payment arrears.
President Mahama emphasised the need for accountability and prudent management of public funds to restore confidence in the energy sector.
He assured the IPPs of his administration’s commitment to resolving the issues and fostering a sustainable energy environment.
