Former President John Dramani Mahama has criticized the mismanagement of funds generated from the Energy Sector Levy Act (ESLA), claiming that the revenue was not used as originally intended.
Speaking at a meeting with Independent Power Producers (IPPs) in Accra on Monday, January 13, Mahama explained that ESLA, introduced in 2015 during his administration, was designed to address the energy sector’s growing debt, stabilize the industry, and ensure reliable electricity supply.
However, Mahama accused the current government of diverting the funds away from their intended purpose. He pointed out that the ESLA revenue, which was meant to pay off energy sector debts, was instead used for other purposes.
“When we passed the levy and left office in December, the new government came in with their own approach. Unfortunately, this resulted in ESLA funds not being used for the original purpose,” Mahama stated. “Instead of clearing the energy sector’s mounting debts, the funds were misused.”
The alleged diversion of ESLA funds, according to Mahama, has worsened the financial difficulties within the sector, with IPPs continuing to face payment arrears.
The former president called for greater transparency and better management of public funds to restore confidence in the energy sector. He assured the IPPs that, if returned to power, his administration would prioritize resolving the sector’s challenges and ensuring long-term sustainability.
