Publish energy sector performance contracts to end secrecy and losses - CEMSE

Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), has urged the State Interest and Governance Authority (SIGA) and the Ministry of Finance to make annual performance contracts with state entities in Ghana's energy sector public. These contracts, which set financial performance, operational efficiency, and service delivery targets, are currently inaccessible to the public.

This lack of transparency has led to concerns over governance gaps within the public enterprise sector. Despite covering 70 entities in 2024, the public has had limited access to these agreements. The 2024 State Ownership Report revealed that despite revenue growth in the energy sub-sector, excessive finance costs of GHC9.39 billion resulted in a net loss of GHC9.67 billion, primarily due to persistent financial challenges faced by entities like the Electricity Company of Ghana (ECG).

Nsiah emphasized that public disclosure of these contracts would allow stakeholders to evaluate the realism of targets, monitor compliance, and hold management accountable for results. He highlighted Regulation 196 of the Public Financial Management Regulation (LI 2378), which mandates annual performance compacts between state entities and the Minister for Finance, but noted the continued information asymmetry for the public.

Nsiah stressed that transparency is crucial to reversing losses and restoring efficiency in the energy sector.