Why VRA Boss Had To Go

HIS ONLY CRIME: Clumsy with the implementation of the SRP
The Government of Ghana has issued a statement on the Volta River Authority (VRA) brouhaha, giving reasons for accepting the resignation of Dr. Charles Yves Wereko-Brobby, an energy expert as the Chief Executive of the Authority as well as his deputy, Jabesh Amissah-Arthur.

The government noted that all the investigations showed that the specific allegations made against Dr. Wereko-Brobby, were not proven by the various inquiries.

The VRA Senior Staff Association and the Workers Union took a long running battle with the Chief Executive accusing him of unilaterally increasing his pay by 300 per cent and made other allegations against him in the matter of contract awards and acquisition of vehicles for the authority which were largely unproven.

The government statement signed by Chief of Staff, Kwadwo Mpiani at the weekend, said the investigations, however, found that management of VRA has been clumsy with the implementation of the Strategic Reserve Plant (SRP), the result of which has been the long delays in the production of power from the plant, resulting in the payment of high rentals to General Electric (GE), the suppliers of the plant, even though the plant is not in operation. Government according to the statement finds this situation unacceptable.

The government has also suspended three others; (Francis Kweku Arkest, Director, Engineering Design and Construction, Charles Darku, Director, Power Sales and Andrews Addy, Ex-Director Legal Department), without pay for a period of three months. On their return to work, they will serve on probation for three months.

“It is these members of the management staff of the Authority who had the responsibility for designing, negotiating and implementing the Strategic Reserve Plant project.”

The statement noted further; “Government finds these decisions necessary, particularly because of the history of many uncompleted projects in the energy sector which has occasioned large losses to the State. An example is the costly delays in the implementation of the US$280 million Aboadze Thermal Plant negotiated in 1996.

The renting of the Cummins Watsila Plant in 1999, by the Ministry of Energy which could not provide energy, and yet an action was taken against the State which was found liable.”

Yet another example in the energy sector, which could not be blamed on the authority, even though it is assigned to them, now, is the GNPC’s Osagyefo barge, which was constructed in 1999, at the cost of US$110 million. This has still not produced any power because of poor planning and implementation, the government said it its statement.

“Even though the barge is to be sited at Effasu, the sustainability of gas reserves at the site, has not been proven. The barge is currently sitting at the Sekondi Naval Base, because of the inability to tow it to the designated pond at Effasu, due to the very poor construction of the pond.”

Considering all these circumstances, government said it had wished that management of VRA had been more careful in the running of the authority. Yet, the entire running of the VRA has been beset with problems compounded not only by actions of management, but also by workers of the Authority who have consistently demanded and obtained unrealistic incentives, including unproductive overtime payments and bonuses, even during periods when VRA was incurring huge losses.

“Government is in no doubt about the urgent need for critical reform of the entire energy sector. Pending this reform, government has appointed an interim management team comprising the following to run the affairs of the Volta River Authority.

Mr. Kweku Awotwe, managing director, Strategic Planning and New Business Development, Ashanti Goldfields Company (AGC), Mr. Debrah Fynn, member of VRA board and former managing director of Electricity Company of Ghana, Mr. Osei Asamoah Bonsu, member of VRA board and a Chartered Accountant, Joshua Ofedie, deputy chief executive. Finance and Investment and Freddie Sowah, director, Thermal Power.

The statement concluded that the action by government is meant to bring home to all stakeholders, the strategic importance of VRA of the economic development of the country.