NPP Government Mismanaged ESLA Revenue, Funds Not Used for Intended Purpose – Mahama

Former President John Dramani Mahama has raised concerns about the mismanagement of funds generated from the Energy Sector Levy Act (ESLA), stating that the revenue was not used for its intended purpose.

Mahama made these remarks during a meeting with Independent Power Producers (IPPs) in Accra on Monday, January 13.

He explained that the ESLA, introduced in 2015 during his administration, was specifically designed to address the mounting debts in Ghana’s energy sector, stabilize the industry, and ensure a reliable power supply.

However, Mahama alleged that the funds generated from the levy were diverted to other purposes after his administration left office. He criticized the current government’s handling of the funds, claiming that the money, which was meant to pay off energy sector debts, was misused.

“After we passed the levy and left office in December, the new government came in with different ideas. Unfortunately, one of the outcomes was that ESLA funds were not used for their intended purpose. Instead of addressing the debt issues in the energy sector, the revenues were mismanaged,” Mahama stated. “The funds that should have gone towards reducing the accumulated debts were used for other purposes.”

The diversion of ESLA funds, Mahama suggested, has worsened the challenges faced by the energy sector, particularly with IPPs struggling to receive payments for their services.

The former president called for greater accountability and more effective management of public funds to restore confidence in the energy sector.

He also reassured the IPPs that, if given the opportunity, his administration would work to resolve the ongoing issues and create a sustainable energy environment.