Accra: The Director General of the State Interests and Governance Authority (SIGA), Professor Michael Kpessa-Whyte, has attributed the ongoing financial difficulties faced by the Electricity Company of Ghana (ECG) to governance challenges experienced in prior years. Despite these setbacks, he remains optimistic about the company's potential to shift from losses to profits with sustained management efforts and improving economic conditions.
According to Ghana Web, Professor Kpessa-Whyte, during an interview on Joy FM, emphasized that the legacy of past governance issues still impacts ECG's financial health. He acknowledged, however, that the company has made notable strides in reducing its losses and liabilities, a positive development that could pave the way for future profitability.
He expressed hope about the company's financial prospects, stating, "But you would have noticed that even though ECG recorded losses, they have significantly reduced their losses, significantly." The reduction in liabilities and debts is a key factor bolstering SIGA's confidence in ECG's potential financial turnaround, contingent on continued favorable economic conditions.
Professor Kpessa-Whyte highlighted that the details of the measures contributing to ECG's improved performance should be provided by the company's management. He suggested that changes in revenue mobilization and expenditure management might have played a role, alongside improvements in the foreign exchange environment.
The SIGA Director General also clarified that the authority's focus would remain on evaluating the performance of state-owned enterprises at both aggregate and sectoral levels, rather than commenting on individual companies. He underscored SIGA's commitment to collaborating with ECG and other state-owned enterprises to enhance their financial outcomes and transition loss-making entities toward profitability.