The Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has stated that approximately 80 percent of the company’s financial losses can be attributed to the depreciation of the Ghanaian Cedi.
This revelation came during his testimony before the Public Accounts Committee (PAC) on Tuesday, February 13.
According to the Auditor General’s report, state power distributors reported a profit of 822 million cedis in 2020. However, the report highlighted that ECG recorded a loss of GHS1.9 billion in 2021.
Mr. Mahama clarified that ECG purchases electricity in dollars and sells it in cedis, leading to significant forex losses.
“The forex losses alone for the year is something that we have to look at in terms of our business. Forex losses are what culminate in over 80 percent of the losses that you are seeing,” he stated.
In an effort to address these challenges, Mahama pledged that ECG would strive to sell enough electricity to reduce commercial losses and work towards closing the financial gap.
Source: ghanaweb.live
