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Sunon Asogli Power denies receipt of promised $30 million payment from ministry of finance

Independent power producer Sunon Asogli Power Ghana Limited has denied receiving any part of the $30 million payment that the Ministry of Finance reportedly authorised for release through the Controller and Accountant General’s Department (CAGD), despite prior government assurances.

This statement from Sunon Asogli has raised concerns over the company’s financial stability and operational viability amid ongoing challenges with the Electricity Company of Ghana (ECG).

The power producer recently shut down its 560 MW facility due to an outstanding debt of $259 million owed by ECG, a move that underscores the financial strain placed on the company by the prolonged debt. The shutdown, which affects a substantial portion of Ghana’s power generation capacity, highlights the critical need for a timely resolution to the ongoing payment dispute.

In an interview with Citi FM, Dr. Elikplim Apetorgbor, Sunon Asogli’s Business Development Manager, detailed the company’s attempts to address the debt through installment payments. However, these efforts have yet to yield results.

According to Dr. Apetorgbor, the Ministry of Finance’s promised $30 million payment has not materialised, despite Sunon Asogli’s notification from CAGD that the funds were intended to be disbursed in installments during the week of October salary payments.

“We received notification from the Controller and Accountant General’s Department in the first week of our shutdown, stating that the Ministry of Finance authorised a $30 million payment,” Dr. Apetorgbor explained. “They were supposed to disburse it in five or six tranches, with at least one tranche during salary payments week and the rest by the end of October. We’re now in November, and not a single tranche has been paid.”

Expressing frustration, Dr. Apetorgbor criticised the Ministry of Finance’s communication, urging a more reliable and transparent approach to information dissemination. “It is unfortunate the Ministry of Finance has been reduced to an official propaganda office,” he said. “Such a sensitive office should not be used for that. I would advise that any information shared by the Finance Minister be double-checked to ensure accuracy.”

The delay in payments from the Ministry of Finance continues to strain Sunon Asogli’s operational capacity, and the situation highlights ongoing issues within Ghana’s energy sector, with wider implications for the country’s power stability and financial health of independent power producers.