The issue of Mahama creating debts for Akufo-Addo’s gov’t was raised by Hammond while discussing the recent restructuring of the Volta River Authority debts.
Following the recent worsening power problems in Ghana, especially, the suspension of gas supply to the country by Wapco, an African pipeline company, the Mahama-led administration has receive more severe lash-outs from the public.
Accusations of Mahama creating debts for Nana Addo’s government is coming from the minority spokesperson on Energy, KT Hammond. The issue of Mahama creating debts for the next administration was raised by Hammond while talking about the recent restructuring of the Volta River Authority (VRA) debts by the Ministry of Finance.
According to Mr Hammond, the recent development is a clear indication that the present administration is incurring legacy debts which will be paid by any government that takes over after the December polls.
Speaking on Eye Witnesses News, he lamented that government has failed to use the Energy Sector Levy meant for taking care of legacy debts in the sector for that purpose. His words:
“I get the sense that they are creating further legacy debts for the Akufo Addo government to settle rather than pay those debts. Government came to Parliament for the Energy Sector Levies which was supposed to yield so much, one would have thought that considerable or substantial amount of money would be used to settle this. We are now being told that the banks have been told to reschedule the payment which may have to be paid in about five years time when they are no longer in government.”
Making referenc to the mid-year supplementary budget presented to the parliament by Seth Terkper, Mr Hammond said the Finance cum Power Minister failed to talk about how government intends to solve the current power problems. He complained that Seth Terkper only mentioned agreements he has entered with some banks and stakeholders as regards the VRA debts. He pointed out lamentably, that the power problem has persisted, even after the President highlighted in his State of the Nation Address that it has been tackled.
New Power Deal
According to reports from Citifmonline, government has approached the parliament with a new power deal which is aimed at increasing the country’s power generation capacity. However, there are fears that the parliament may refuse to endorse it.
According to the report, the deal is currently before the Mines and Energy Committee of Parliament, and it is expected that it will be passed by the House in the next few days before the break.
The two-decade long power deal with Early Power Limited, will see the construction, fueling and maintenance of a power plant at a total cost said to be exponentially higher than the average international cost of constructing such a plant in the industry. The 400 megawatt plant which analysts have said would normally cost 600 million dollars, will apparently cost taxpayers almost a billion dollars.
K.T Hammond, who is a prominent member of the committee, avoided making a definitive statement on whether the deal will be approved by Parliament or not.
However, he suggested that there might not be enough time to get a complete understanding of the deal so it might not be passed before the July 29 break.