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Minority demands accountability over GH¢1 fuel levy for power sector

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By: Valentia Tetteh 

The Minority in Parliament has called on government to account for revenue generated from the GH¢1 fuel levy, introduced as a dedicated intervention to help address challenges in Ghana’s power sector.

Speaking at a press conference in Parliament on Tuesday, April 28, Ranking Member on the Parliamentary Select Committee on Energy and Member of Parliament for Afigya Kwabre North, Collins Adomako-Mensah, questioned the utilisation of funds collected under the levy.

His remarks come in the wake of recent power outages reported in parts of the country.

Call for transparency

Mr. Adomako-Mensah said Ghanaians were asked to bear the additional cost on fuel with the understanding that the proceeds would be used to stabilise the energy sector.

“Citizens were asked to bear this additional financial burden at the pump, on top of the already crippling cost of living, with the assurance that the funds would be channeled directly into fixing the power sector,” he stated.

He argued that no official report has so far been presented to Parliament or the public regarding collections and expenditure under the levy.

“To this day, no report on this levy has been presented to Parliament. No public accounting has been made. No independent audit has been published,” he said.

Questions over collections and expenditure

The Ranking Member raised concerns over the amount of money collected, where the funds have been lodged, and what projects or payments have been financed with the proceeds.

“How much revenue has been collected under this levy since its introduction? Into which account or accounts have the funds been paid? What specific projects, interventions, or payments have been made from the funds collected?” he asked.

He maintained that these are issues government should be able to address promptly in the interest of accountability.

Concerns over sector debt

Mr. Adomako-Mensah also challenged government’s claims of improvements in the financial position of the energy sector.

According to him, available data indicates that government still owes Independent Power Producers (IPPs) more than 500 million dollars, while over 200 million dollars is owed to companies that supplied fuel for power generation.

“We call on the government to come clear on the financial situation in the sector, particularly after the imposition of the Dumsor levy,” he said.

Demand for report to Parliament

The Minority is therefore calling on the Ministers for Energy and Finance to present a detailed and independently verified report to Parliament when the House resumes sittings.

“We are calling on the Minister for Energy and the Minister for Finance to, within the shortest possible time, lay before Parliament… a full, detailed and independently verified report on the GH¢1 dumsor levy,” he stressed.

He added that the report should cover all collections made, disbursements undertaken, and the outcomes of expenditures.

Public interest

The Minority says Ghanaians deserve full disclosure on the levy and how the funds have been utilised.
“If the levy has been collected but not properly applied, Ghanaians have a right to know. If it has been misappropriated, those responsible must be held accountable,” Mr. Adomako-Mensah stated.

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