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Mahama Blames Energy Sector Woes on Mismanagement of ESLA Funds
President John Dramani Mahama has raised serious concerns about the alleged mismanagement of funds generated from the Energy Sector Levy Act (ESLA), a policy introduced during his previous administration to address the energy sector’s growing debts.
Speaking at a meeting with Independent Power Producers (IPPs) in Accra on Monday, January 13, President Mahama criticised the diversion of ESLA revenues away from their intended purpose.
President Mahama highlighted that the ESLA, enacted in 2015 under his leadership, was specifically designed to:
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- Address accumulated energy sector debts.
- Stabilise the sector’s financial health.
- Ensure a reliable power supply for the country.
However, he alleged that after his administration left office in December 2016, the incoming government failed to adhere to the levy’s objectives.
“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 ESL were mismanaged. So what should have gone to pay down a lot of the debts that have accumulated today was used for other purposes,” President Mahama stated.
The alleged mismanagement of ESLA funds has worsened the energy sector’s challenges. Independent Power Producers, already burdened by substantial payment arrears, continue to face financial instability. These delays have strained the sector, undermining efforts to maintain consistent power generation and supply.
President Mahama emphasised the importance of prudent financial management and accountability to restore confidence in the energy sector.
He assured IPPs that his administration remains committed to resolving the sector’s financial challenges and fostering a sustainable environment for energy production.
“Our focus is to ensure that public funds are managed responsibly and efficiently. This is the only way to guarantee stability and sustainability in our energy sector,” he added.
