President John Dramani Mahama has accused the immediate past New Patriotic Party (NPP) government of mismanaging the Energy Sector Levies Act (ESLA) funds, leading to a worsening debt crisis in the energy sector.
Speaking during a meeting with Independent Power Producers (IPPs) in Accra on Monday, January 13, Mahama expressed concern that the revenues from the levy, which was introduced during his tenure, had been diverted for other purposes.
“After we passed it and left office in December, the new government came in, and they had other ideas and other ways of trying to do things. But unfortunately, one of the outcomes was that ESLA was not used for its intended purpose. Revenues of ESLA were mismanaged,” he said.
Mahama argued that the levy was meant to address outstanding debts in the energy sector but noted that failure to utilize the funds appropriately has caused significant financial strain.
“What should have gone to pay down a lot of the debts that have accumulated today was used for other purposes,” he stated.
The ESLA, established in 2015, was designed to help settle debts owed to power producers and ensure sustainable financing for the energy sector.
However, the president believes that the immediate past administration’s handling of the levy has undermined this goal, contributing to the sector’s financial challenges.