Audio By Carbonatix
The 2019 Auditor-General’s report has revealed a ¢230 million debt owed the Ghana Grid Company Limited (GRIDCo).
Experts say this amount accumulated as of December 2017, may be responsible for recent major national power cuts.
GRIDCO and other players in the power sector came under intense pressure and public backlash following intermittent power outages some weeks ago.
The President’s representative at the Finance Ministry, Charles Adu Boahen some days later admitted there were challenges in the power sector but said the challenges have not reached a crisis stage.
However, the A-G's report says these outstanding receivables may become impaired, and also impact negatively on the company's operating cash flow.
The report lists Enclave Power Company Limited as owing GRIDCo a little over ¢3 million, Electricity Company of Ghana's debt is over ¢1 million, Northern Electricity Distribution Company (NEDCo), ¢63 million.
Bui Power Authority owes GRIDCo more than ¢4 million and Volta Aluminium Company Limited also owing over ¢15 million.
Others include Great Consolidated Diamonds and Free Zones Board bringing the total to more than ¢230 million.
Management of GRIDCo responded that the debts, relating to NEDCo, ECG and VALCO are being considered for settlement under the ESLA Bond arrangement.
It says management is making efforts to collect the monies.
The Auditor-General's report also stated that the Ghana Grid Company Limited did not have a signed transmission service agreement with some customers and generators, although its accounting and finance manual requires a contract to be in place for such services rendered.
The report says the absence of signed agreement with customers may result in the company not been able to enforce the terms of these agreements.
Also in the event of disputes, the company may have no legal point of reference in settling them.
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