The Public Utilities Workers’ Union (PUWU) has strongly criticised government plans to introduce private sector participation in the Electricity Company of Ghana (ECG), describing the move as an “abuse of trust” and a betrayal of earlier agreements reached with organised labour.
Speaking in an interview on Joy FM’s Newsnight on Monday, December 29, the General Secretary of PUWU-TUC, Timothy Nyame, questioned the rationale behind pushing for privatisation at a time when ECG, he said, is recording a clear turnaround under its new leadership.
According to Mr Nyame, identifying the problems at ECG was already “about 50 per cent of the solution,” and workers, management, and the board have demonstrated that the company can recover without private investors.
“You are talking about a company that is turning around, yet you still want to infuse private sector participation,” he said. “Does that mean you do not trust the people who have been appointed as the new directors?” he asked.
Mr Nyame pointed to what he described as measurable improvements at ECG over a short period, crediting the progress to effective leadership and strong collaboration between management and workers.
He said ECG is now recording high performance, including improved payments to Independent Power Producers (IPPs) and a reduction in system losses by three percentage points.
“Yet, despite these gains, there is insistence on private sector participation at all costs,” he added.
The PUWU General Secretary expressed skepticism about claims that private sector participation would automatically improve efficiency, arguing that such arrangements often end up burdening citizens.
Mr Nyame said the original agreement with government was meant to demonstrate the capacity of Ghanaians to turn around a struggling state enterprise when given the right direction and support.
“All the conditions we agreed on were supposed to be adhered to by all parties,” he said.
He warned against any attempt to “paint a picture” that ECG must be sold or handed over to private interests, insisting that the company is not an ordinary commercial entity.
“ECG is not an ordinary company that can simply be divested and handed over to private interests. It is a strategic national asset that concerns all of us,” Mr Nyame stated.
According to him, ECG has capable and experienced staff who can restore the company’s fortunes if properly led, and pushing privatisation now raises questions about government’s confidence in its own appointees.
Mr Nyame suggested that government’s concern may be the pace of the turnaround rather than its direction, but questioned the logic behind that argument.
Describing the situation as deeply disappointing, he said PUWU feels government has departed from the spirit and letter of earlier agreements.
“What is happening amounts to an abuse of trust. We are not happy. What we agreed on with the Minister is not what is being adhered to,” he said.
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