Energy expert, Kwame Jantuah has asserted that the primary obstacle hindering the effective performance of the Ghana Grid Company Limited (GRIDCo), the Electricity Company of Ghana (ECG), and the Volta River Authority (VRA) is political interference.
He argued that political appointees within these institutions should step aside to allow technical experts to carry out their duties effectively.
Mr Jantuah’s comments come in response to Asantehene Otumfuo Osei Tutu II’s call to diversify GRIDCo, ECG, and VRA. Otumfuo Osei Tutu II believes that privatizing these entities will enhance their efficiency.
During the commissioning of a 430-kilometer natural gas pipeline by Genser Energy in Kumasi on April 17, Otumfuo Osei Tutu II emphasized the importance of government involving the private sector in establishing and managing companies.
“VRA and others are all government establishments, let’s give it out and diversify them into the private sector and get more money there and get the right people to do it. GRIDCo and others let’s give them the money and get the qualified people, diverse government from it and let them work. Electricity Company is in a situation where we don’t know, but that also must be diversified and given to the private sector.
“Why are we still holding on when we don’t have the money? We’re not able to collect all the taxes we want, we’re going to IMF and all those for money. We’re hanging onto industries we cannot maintain and run.”
He added “It’s about time we face reality and decide on what government should be doing and what the private sector should be doing. This is a testimony of the private sector, and they were able to attract investors.”
He urged the government to privatize VRA and other state-owned enterprises to attract more investment and create employment opportunities.
Mr Jantuah, speaking on the Ghana Tonight show on TV3, questioned the feasibility of entrusting these critical sectors to the private sector. He raised concerns about whether banks could raise the necessary funds and highlighted potential issues such as capital flight.
Furthermore, Jantuah underscored the importance of having technical experts manage technical institutions to ensure continuity and effectiveness, advocating for a reduction in political interference.
He pointed out that the politicization of institutions such as the Public Utilities Regulatory Commission (PURC), ECG, and GRIDCo is detrimental to their operations.
“Does the private sector have the wherewithal to do this? Even if you go to the banks, can banks raise the money? I remember when we discovered oil we tried to syndicate banks to raise money for exploration, were we able to do it? Let us be honest, I respect Otumfuo highly, he is my relative and I respect him but can we do it? Can we trust the privatise sector? Isn’t it capital flight?
“PDS, when they came, what happened? The internationals that come to Ghana to work, do they not change the money into their currencies and take it away,? Isn’t it our local forex that they change the money away?
“We have to be sure that we have streamlined our laws, you need technical people to run technical institutions so that when the government changes those technical people are still there this issue about the president nominating everybody, that is where you get the politics in there. This PURC, ECG GRDICO thing, it is politics.”