The Minister of Finance, Dr. Mohammed Amin Adam, has expressed strong criticism of Sunon Asogli Power Limited, accusing the company of acting in bad faith following its decision to shut down operations.
Dr. Amin Adam explained that the Ghanaian government had previously reached an agreement with Sunon Asogli to resolve outstanding payments owed to the company.
However, he revealed that instead of adhering to the original terms, the power producer demanded payment before signing the settlement agreement.
This shift in expectations, according to the Minister, led to a significant escalation in the dispute.
He detailed how Sunon Asogli changed the terms of the agreement, doubling its demand from the initially agreed $30 million to a staggering $60 million.
Dr. Amin Adam stated that the company threatened to cease operations if the government did not meet this new financial demand, which ultimately resulted in the shutdown of Sunon Asogli.
“When the Ministry of Finance did a one-off payment to all the IPPs, we were supposed to pay a Solid $30 million. Later on, subsequently, they made a case for another $30 million, but we did not agree to that. So when we finalized the negotiation with them under arrears, ECG actually led the negotiation, and as part of the settlement, ECG wanted us to pay the $30 million they made a case for which we did not agree as part of the settlement.”
“And so I had meetings with Asogli and we agreed that we will pay, but we wanted them to sign the settlement agreement because this is one of the terms of the agreement. They said, no, we should pay before they sign.
The Minister criticized Sunon Asogli’s timing, suggesting that the shutdown was a calculated move to exert pressure on the government, particularly as the country approaches its upcoming elections.
Despite the ongoing dispute, Dr. Amin Adam confirmed that Sunon Asogli has now agreed to sign the settlement agreement, indicating a potential path forward.
He noted that the Electricity Company of Ghana has been instructed to finalize the signing, which aims to restore relations between the parties and ensure a stable power supply for the country.
“And so people behave as if we as a country, don’t know our rights. And so by going ahead to shut down, they acted in bad faith. This is not how partners work together, particularly when it involves financial negotiations.”
“I was informed only yesterday that they are ready to sign the (1:25) settlement agreement. And so we’ve instructed ECG to go ahead and sign,” he said.
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Source: Anthony Sasu Ayisadu/ATLFMNEWS
