Prof. Agyeman Badu Akosa
Five members of the Convention
People’s Party (CPP) are legally
challenging the moves by the
government to partially privatise the
Electricity Company of Ghana (ECG).
They have filed an application
praying the Human Rights Court to
direct the government to “cease
forthwith from undertaking or
continuing any process of any kind
whatsoever to privatise the Electricity
Company of Ghana”.
Prof. Agyeman Badu Akosah, a
pathologist; Naa Kordai Assimeh, a
legal practitioner; Mr Kingsley
Kwasitsu, a retired teacher; Dr Adolph
Lutterodt, an educationist, and Ms
Dede Amanor Wilks, a development
specialist, also want the court to
order the government to take
immediate and effective steps to
settle its $400 million debt to the
ECG.
Joined to the suit as defendants are
the Attorney-General, the Minister of
Power and the ECG.
The applicants are urging the court to
grant “an order of perpetual
injunction directed at the defendants
restraining them, their principals,
agents, privies, workers howsoever or
otherwise whomsoever from carrying
out any operations or activities
geared towards the privatisation or
dismemberment of the ECG in any
way or manner as intended by the
government”.
They are also asking for any further or
other orders that would inure to the
“interest of the people of this country
as this court would deem fit”.
A statement of claim filed last
Tuesday on their behalf by their
lawyer, Mr Bright Akwetey, stated that
the plaintiffs initiated the action in
their individual and collective
capacities as citizens of Ghana in
respect of the intended privatisation
of the ECG through the Millennium
Development Authority (MiDA).
It said in the week beginning October
8, 2015, the Minister of Power
released information which was
published on pages 1 and 2 of the
Daily Guide, a private newspaper, to
the effect that the ECG was being
privatised and that the MiDA had
been appointed by the government to
lead the privatisation process.
“The information indicated that the
MiDA intends to conduct an
international competitive tender to
select a company with expertise in
investment, management and
distribution of electricity with the
objective of selecting a suitable
company to run the ECG, before the
end of the year 2016.
Plaintiffs are of the view that the
government’s action in putting up the
ECG for privatisation is inimical to the
interest of Ghana and Ghanaians,” the
statement of claim argued.
It further opined that electricity was a
security asset of grave national
importance and value and, therefore,
its control by any foreign or other
private company was likely to
jeopardise the security of Ghana,
adding that “it is risky to entrust the
administration of ECG to a private
company now”.
The statement of claim held that “it is
public knowledge that the
government is owing ECG
approximately $400 million, which
money has been withheld from the
ECG, apparently, deliberately, in order
to weaken the administration of the
ECG and to prepare it for takeover by
a private company to the detriment of
the economy of Ghana.
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It is the contention of plaintiffs that if
the government liquidates its debt to
the ECG, the ECG will be able to pay
its creditors, including Volta River
Authority (VRA) and GRIDCO and can
consequently improve distribution of
electricity to Ghana and Ghanaians,”
the statement of claim said.
The plaintiffs contended that a major
problem with ECG was inefficient
management, “but if the selection
and appointment of management in
ECG is de-politicised, the ECG can
effectively deliver services to Ghana
and Ghanaians”.
For instance, the plaintiffs said in the
year 2011, “under competent and very
well-motivated management and
staff, ECG recorded a profit of GH
¢ß60 million after tax. This testifies
to the fact that given the right
conditions and leadership the ECG
can deliver”.
On the issue of power generation, the
plaintiffs said the ECG was not
responsible for the generation of
power in Ghana.
“ECG does not transmit the power
generated from the generating
sources to consumers. ECG only
distributes to the end-users for both
domestic and commercial
consumption and, therefore, it is
unjust and improper for the
government to take this action of
privatising ECG to create the false
impression that ECG is responsible
also for power generation and
transmission in Ghana,” it noted.
This position, according to the
plaintiffs, was premised on the fact
that there had been a shortfall in the
generation of power in Ghana for
distribution by the ECG for a
“considerable length of time now but
needless to repeat, that cannot be
blamed on the ECG”.
The other contention of the plaintiffs
was that the privatisation of the ECG
would negatively impact on the
welfare and interest of the people of
Ghana.
“If the ECG is incapable of performing
its functions effectively and efficiently
now, the cause is traceable to the
blight attitude deliberately adopted
by the government towards ECG to
prepare it for privatisation for the
benefit of private investors but to the
detriment of Ghana and Ghanaians.
It is the position of the plaintiffs that
the government should pay the $400
million debt owed to ECG and to stop
the privatisation process because no
privatisation of any state enterprise
since the year 1966 has yielded any
good dividend to Ghana and
Ghanaians and the privatisation of
the ECG will not be an exception.”
The plaintiffs are of the view that the
government will not stop the process
of the privatisation of the ECG unless
compelled by the court to do so.
In any case, the plaintiffs argued that
they were convinced it was the duty
of the Divestiture Implementation
Committee (DIC) under the
Divestiture of State Interest
(Implementation) Act, 1993 (PNDC
Law 326) to carry out the process of
privatising ECG and not the MiDA.
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