The Public Utilities Workers’ Union (PUWU) has criticised government plans to introduce private sector participation in the Electricity Company of Ghana (ECG), describing the proposal as an “abuse of trust” and a betrayal of agreements previously reached with organised labour.
Speaking on Joy FM’s Newsnight programme on Monday, 29 December, the General Secretary of PUWU-TUC, Timothy Nyame, questioned the justification for pursuing private involvement at a time when, he said, ECG is showing clear signs of recovery under new leadership.
Mr Nyame argued that the company’s recent performance demonstrates that ECG can be turned around without the involvement of private investors. He said workers, management and the board had collectively identified the company’s key challenges and begun addressing them effectively.
“Identifying the problems is already about 50 per cent of the solution,” he said. “You are talking about a company that is turning around, yet you still want to infuse private sector participation. Does that mean you do not trust the people who have been appointed as the new directors?”
The union leader pointed to what he described as measurable improvements within a short period, attributing the progress to strong leadership and improved collaboration between management and workers.
According to Mr Nyame, ECG is now recording higher performance levels, including improved payments to Independent Power Producers (IPPs) and a reduction in system losses by three percentage points. He said these gains undermined arguments that private sector participation was the only path to efficiency.
“Despite these achievements, there is still insistence on private sector participation at all costs,” he said.
Mr Nyame expressed scepticism about claims that private involvement would automatically improve efficiency at ECG. He warned that such arrangements often place additional financial burdens on consumers rather than delivering promised benefits.
He said earlier discussions with government were intended to prove that Ghanaians had the capacity to revive a struggling state-owned enterprise when given the right leadership, resources and policy support.
“All the conditions we agreed on were supposed to be adhered to by all parties,” Mr Nyame said, adding that the union now feels government has departed from those commitments.
He cautioned against any attempt to portray ECG as an entity that must be sold or handed over to private interests, stressing that the company plays a critical role in Ghana’s economy and energy security.
“ECG is not an ordinary company that can simply be divested and handed over to private interests. It is a strategic national asset that concerns all of us,” he said.
Mr Nyame insisted that ECG has skilled and experienced staff capable of restoring the company’s fortunes if properly supported. He suggested that the renewed push for private sector participation raises questions about government’s confidence in its own appointees to the company’s board and management.
While acknowledging that ECG’s turnaround may take time, he questioned the logic of introducing private players when, in his view, the current reform process is already yielding results.
Describing the situation as disappointing, Mr Nyame said the union believes government has acted contrary to both the spirit and the letter of previous agreements.
“What is happening amounts to an abuse of trust. We are not happy. What we agreed on with the Minister is not what is being adhered to,” he said.
Government officials have yet to publicly respond to the union’s concerns.