The operators of the Karpowership plant in Aboadze, Western Region, have issued a stern warning to the government, threatening to shut down operations if outstanding debts exceeding $370 million are not settled promptly.

The caution came during a meeting held on Monday February 10, 2025 between the company’s representatives and the Minister of Energy and Green Transitions, John Abdulai Jinapor, at the ministry’s offices in Accra.

Karpowership, which supplies approximately 450 megawatts of electricity to Ghana’s national grid, emphasized that the mounting debt owed by the Electricity Company of Ghana (ECG) has significantly hampered its operations.

According to the company, if payments are not made soon, it will have no choice but to cease power generation.

While the company acknowledged the potentially devastating impact of a power plant shutdown on the livelihoods and well-being of Ghanaians, it stressed that the financial burden had become unsustainable to its operations .

During the meeting, Karpowership’s Chief Commercial Officer (CCO), Zeynep Harezi Yilmaz, provided an overview of payments received to date.

He revealed that as of December 2024, ECG had paid $39.60 million, while the Ministry of Finance disbursed $185.28 million. Despite these payments, the company is still owed over $370 million.

Yilmaz urged the government to take immediate action to clear the outstanding invoices and compel ECG to adhere to the terms of the Power Purchase Agreement (PPA).

“Should ECG, and by extension the government, fail to honor the terms of the PPA and make the necessary payments, we will be left with no choice but to shut down our plant,” he cautioned.

In response, Minister of Energy John Jinapor reaffirmed the government’s recognition of Karpowership’s crucial role in the nation’s energy sector.

He assured the company of the government’s commitment to resolving the issue promptly.

“We will prioritize making the required payments to ensure the continuous operation of the power generation company and engage in open and transparent communication with Karpowership,” John Jinapor stated.

He added that a payment plan would be established immediately to address the arrears and prevent the impending shutdown.

MA

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Dr. Johnson Asiama is the Acting BoG Governor

The Centre for Democratic Movement has condemned President John Dramani Mahama’s appointment of Dr. Johnson Asiama as Acting Governor of the Bank of Ghana.

According to the group, the appointment violates constitutional principles, weakens financial oversight, and undermines public confidence in Ghana’s banking system.

A press release by the movement noted unresolved allegations related to Dr. Asiama’s role in Ghana’s financial sector crisis as a basis for its concerns about transparency and accountability.

Dr. Asiama was charged alongside nine individuals in connection with the collapse of some banks, facing charges such as fraudulent breach of trust, money laundering, conspiracy to commit a crime, and violations of the Bank of Ghana Act.

“Ghana, as a member of the United Nations Convention Against Corruption (UNCAC), is obligated to promote integrity and accountability in public office. Article 7 of UNCAC mandates state parties to establish merit-based and transparent selection processes for public officials in positions of financial responsibility,” parts of the release read.

The group asserted that by appointing Dr. Asiama without fully addressing concerns about his past actions, Ghana is failing to meet these international obligations.

“Similarly, the Financial Action Task Force (FATF), the global watchdog against financial crimes, emphasizes that leadership in central banks should be free from ethical controversies to ensure sound financial governance. Several countries, including the United States and the United Kingdom, have clear guidelines prohibiting the appointment of officials with unresolved financial misconduct allegations to key economic institutions,” they added.

The group asserts that restoring trust in Ghana’s financial institutions requires merit-based appointments.

It added that, therefore, if the government fails to take urgent action, CDM “will have no choice but to petition key international bodies and donor institutions”, including:

• The European Union Representative in Ghana

• The International Monetary Fund (IMF)

• The World Bank

• The Chinese Embassy

• The U.S. Embassy

• Other major diplomatic missions and financial institutions.

SSD/AE

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