TUC challenges government’s distinction between PSP and ECG privatisation

The Trades Union Congress (TUC) has taken issue with the government's separation of private sector participation (PSP) from privatisation in its plan for the Electricity Company of Ghana (ECG). Dr Kwabena Nyarko Otoo, Deputy Secretary-General of the TUC, declared on Joy FM's Top Story that the proposed PSP arrangement is tantamount to privatisation, contrary to the government's stance that it is not aiming to sell the company's assets.

Otoo argued that the notion of privatisation should be understood beyond a simple sale of all state-owned enterprises. He pointed out that past privatisation efforts did not always involve the complete sale, but could include the transfer of controlling ownership. According to Otoo, the TUC's primary concern is the potential impact of the proposed arrangement on ECG's role and control over its assets, particularly if a private entity gains control over the distribution function.

The union's dissatisfaction stems from the government's assurance that the assets won't be sold, as they believe ECG, a company with a long history of power distribution, will merely transition from an asset management company to one solely focused on asset management. This interpretation of the proposed arrangement raises concerns among organised labour regarding its implications for ECG workers, the state, and consumers.