Akufo-Addo doing ‘gymnastics’ with energy sector levy - Jinapor

The President Nana Addo Dankwa Akufo-Addo government is engaged in ‘gymnastics’ (playing games) with the energy sector levy introduced by the previous government, a former Deputy Power Minister, John Jinapor has said.

According to John Jinapor who is also the Member of Parliament for Yapei-Kusagu constituency, the government has not been truthful to the citizenry regarding how it intends to handle the energy sector levy.

The energy sector levy was introduced by the previous John Mahama-led National Democratic Congress (NDC) administration in 2015 as part of measures to raise funds to settle the indebtedness of the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG) to some commercial banks in the country.

The then NDC government defended the passage of the controversial law; saying the decision was needed to protect state institutions sinking under huge debts.

The New Patriotic Party (NPP), while in opposition, decried the levy describing it as a nuisance and promised to scrap it if it won the elections in order to provide relief to consumers.

However, few days after the NPP won the elections, the Finance Minister, Ken Ofori Atta, at a media briefing made a sharp u-turn saying the Akufo-Addo government may not scrap the levy which they (NPP) had criticised.

Presenting his first state of the nation address to parliament Tuesday, President Akufo-Addo said the country’s energy sector was currently “heavily indebted”.

Stating some interventions he will introduce to address the challenges, the President said he will prioritise transparency in the sector by introducing a new tariff policy to reclassify consumer categories.

The President’s new proposal is a sharp contrast to his earlier position during the electioneering period where he promised not to introduce new tariffs, insisting he would completely scrap the levies. John Jinapor believes the move by the President is an excuse not to remove the energy sector levy.

‘’I can tell you on authority that this is a deliberate attempt to prepare the ground in other not to scrap the energy sector levy. All that they (NPP) are doing is nothing but mere gymnastics,” John Jinapor told host of Gold Power Drive, Samuel Eshun Wednesday.

He added: “clearly all the things the NPP talk about; it appears they are beating a retreat. In nine days time, the budget would be read. Let’s all take an interest and observe whether in the budget there would be a statement to scrap the 10% energy sector levy as they promised.”

He stressed that the NDC while in government cautioned the then opposition NPP not to politicise the energy sector levy but the NPP failed to heed to advice.