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Consider private participation for VRA thermal plants – NDC MP

Consider private participation for VRA thermal plants – NDC MP Featured

The MP for Damango, Adam Mutawakilu, has advised the government to consider private sector participation instead of an outright sale of Volta River Authority (VRA) thermal plants.

Speaking on Eyewitness News, he described private sector participation “as the most efficient way to go” in the handling of the thermal plants. 

The government, however, is set on the sale of the plants, as indicated by an advertisement the sale of at least a majority stake in specified thermal plants owned by the VRA.

The government had decided that the VRA was not doing a good enough job with the management of the thermal plants, but the recent move to sell that has upset some workers of the VRA.

Mr. Mutawakilu also insisted that, selling off state assets to solve problems is not always the best action to take.

He recounted the near sale of the now-GCB Bank in 2007/08 because it was in distress, but “NDC came into power and we thought we should not just sell it. Let’s let private sector participate.”

“… And today, we are using GCB Bank to salvage UT and Capital Bank. That tells you that it’s not just selling that is the most important solution. Letting the private sector participate, and therefore Ghanaians participate; that is local content.”

He also explained that opting for private sector participation would mean government will retain some shares in the company, and it wouldn’t be left entirely in the hands of the public sector.

The MP argued further that, the private sector participation would bring some discipline and keep the government on its toes.

“Once the private sector participates and even has 49 percent shares and the government has 51 percent shares, it brings discipline. Ministers and other government appointees cannot abuse their powers.”

Thus, the sale of VRA thermal plants shouldn’t be an option, Mr. Mutawakilu stressed.

“If that is their option, they should rethink because there will be resistance from well-meaning Ghanaians, from the NDC in respect to the sale of the thermal plants,” he warned.

Additional Info

  • Origin: citifm/GhAgent