Bussiness
Government yet to fully settle Covid-19 relief to ECG, but pays ¢16.76bn of total indebtedness
Government is yet to fully settled electricity subsidies granted as COVID-19 relief to the Electricity Company of Ghana.
This is captured in a report by the power distribution firm submitted to the Public Utilities and Regulatory Commission (PURC) for consideration to increase electricity tariff.
ECG however expects the government to continue to honour its debt obligations to keep the company afloat.
It therefore expressed worry that subsidies expected to be paid by the government on behalf of customers are always in arrears, thereby negatively affecting the financial health of the company.
Government’s indebtedness to ECG in the last recent few years had however gone down to ¢4.2 billion.
Governments indebtedness to ECG in the last few years were ¢1.015 billion, ¢1.375 and ¢1.840 billion in 2019, 2020 and 2021 respectively.
The components of government bills are MDAs, GWCL, Subsidies, Streetlight shortfall, Utility Relief granted to all customers from July 2016 to June 2019 and Covid-19 Relief.
Government settles ECG 16.76bn of its indebtedness
Between 2019 and 2021, government paid ECG ¢16.76 billion as its indebtedness.
The various government payments, the report said, were reconciled with stakeholders in the electricity value chain and applied to reduce government indebtedness.
In 2019, government paid a total amount of ¢4.592 billion out of which an amount of 1.840 billion was paid to fuel suppliers and ¢2.751 billion to Independent Power Producers (IPPs).
In 2020, government paid a total amount of ¢5.925 billion, out of which an amount of ¢1.597 billion was paid to fuel suppliers and ¢4.328 billion to IPPs.
In 2021, government paid a total amount of ¢6.243 billion, out of which an amount of 1.230 billion was paid to fuel suppliers and ¢5.013 billion to IPPs.
Importantly, the total amount paid by government under this arrangement was more than government’s indebtedness.
“The total amount paid by government under this arrangement was more than Government’s indebtedness and the balance was treated accordingly as other government equity”.
Source: www.myjoyonline.com
Bussiness
Ghana to host mining and minerals convention 2025 to shape future of gold industry
Ghana’s gold and minerals sector is set for a major spotlight as Meetings. Co, in partnership with key industry stakeholders, announces the Mining & Minerals Convention 2025, scheduled from August 26-27, 2025, at the Kempinski Hotel Gold Coast City, Accra.
Held under the theme “Shaping the Future of Ghana’s Gold Industry,”‘ the Convention will convene government leaders, regulators, miners, refiners, investors, sustainability partners, innovators, and responsible mining, and global competitiveness,policy experts to explore strategies that position Ghana’s gold industry for long-term growth.
The two-day convention will feature presidential and ministerial keynote addresses, industry thought leadership, technical paper presentations, policy dialogues, fireside chats, exhibitions, and high-level networking sessions.
Convention delegates can anticipate a dynamic and insightful experience, marked by thought leadership from leading policymakers and regulators, in-depth discussions on key topics such as sustainability, ESG, digital gold, and responsible sourcing, as well as valuable opportunities to forge public-private partnerships and investment deals.
Moreover, the event will offer practical action points aimed at unlocking greater economic value for Ghana.
The 2025 edition will be supported by a strong coalition of strategic partners, including the Ministry of Lands and Natural Resources, the Minerals Commission, GoldBod, the Minerals Income and Investment Fund (MIIF), and the Ghana Extractive Industries Transparency Initiative (GHEITI).
Bussiness
Finance Minister tranfers funds to DACF, NHIS and GETFUND
The Minister for Finance Hon. Cassiel Ato Forson has disclosed that a sum of nine hundred and Eighty-Seven Million, Nine Hundred and Sixty-Five thousand and Seventy-Three Ghana Cedis (GHS987,965,073.00) from the Consolidated Fund into the District Assembly Common Fund Account, being the first quarter amount due to the DACF.
Furthermore, the Finance Minister informed the House that a total amount of Two Billion, Thirty- Three Million, Four Hundred and Sixty-Nine Thousand, Six Hundred and Seven Ghana Cedis (GHS2,033,469,607) has been disbursed to the National Health Insurance Fund.
While the Ghana Education Trust Fund has also received a total of Two Billion, Seven and Ten Million, Two Hundred and Twenty-Seven Ghana Cedis (GHS2,710,227,947.00) for the months January, February, March and April,2025.
The Finance Minister disclosed this in his statement to Parliament on the payments to statutory funds on the floor of the House.
In addition, he cautioned that the Administrator of the District Assembly Common Fund is required to ensure that 80% of this amount is transferred directly to the Assemblies without fail and expenditure returns submitted to the Ministry of Finance before subsequent releases will be made.
He added that Members are encouraged to monitor the utilization of these amounts sent to their respective Assemblies in line with the approved guidelines by Cabinet.
In his closing remark, Ato Forson said he’s going to take the concerns of the House seriously.
For his part, the Majority Leader, Mahama Ayariga made known the President’s prioritization of women in the country stating that President Mahama is “Pro-women”.
This is due to the fact that women are going to be the core beneficiaries from the expenditures going to be made by the MMDA’s, he added.
The Minority Leader Alexander Afenyo-Markin questioned the Finance Minister why road contractors have not been paid for more than five months. He said the Minister must not be applauded for since the allocation of these funds were long overdue.
