Minister of Finance, Dr. Mohammed Amin Adam, says Sunon Asogli Power Limited acted in bad faith by shutting down its operations.

Addressing the press at Washington DC, Dr. Amin Adam disclosed that the government had initially agreed with Sunon Asogli to settle outstanding payments. However, contrary to the agreed terms, the power producer demanded payment before signing the settlement agreement.

The Minister further revealed that Sunon Asogli altered the initial settlement terms by demanding $60 million, double the originally agreed amount of $30 million.

The company also threatened to cease operations if the government failed to meet the new financial demand. This, he explained led to the shutdown of Sunon Asogli.

“I had meetings with Asogli, and we agreed that we would pay, but we wanted them to sign the settlement agreement because this is one of the terms of the agreement. They said no, we should pay before they sign.

 “They came and said they no longer want 30 million. Now they want $60 million. And if we don't pay them $60 million, they will shut down. That is why they shut down,” Dr. Amin Adam stated.

On October 8, Sunon Asogli Power Ltd. shutdown of its operations due to the inability of the Electricity Company of Ghana (ECG) to pay its $259 million debt.

The company in a statement released on October 16, 2024, said “This difficult decision was necessitated by our inability to fund our operations because of the failure of the ECG to honour their overdue payment obligations and their various promises to that effect.”

But Dr Amin Adam criticised the power producer’s decision to halt operations, suggesting that the timing was a deliberate attempt to pressure the government, especially with the country preparing for elections.

“People behave as if we, as a country, don’t know our rights or what we want, especially when elections are near. They think they can put a gun to the head of Ghana. By shutting down, they acted in bad faith. This is not how partners work together when it involves financial negotiations,” Dr. Amin Adam added.

Despite the impasse, the Minister disclosed that Sunon Asogli has now agreed to sign the settlement agreement.

He noted that ECG has been instructed to proceed with the signing to restore relations and ensure a stable power supply.