No need to fully privatise ECG - Director General of State Interests Governance Authority Kpessa-Whyte

The Director General of the State Interests and Governance Authority (SIGA), Professor Michael Kpessa-Whyte, has cautioned against the outright privatisation of the Electricity Company of Ghana (ECG), describing the power distributor as a strategic national asset that should remain under state control.

Speaking in a television interview on TV3’s Hot Issues programme on Sunday, [April 6, 2025] Prof. Kpessa-Whyte clarified SIGA’s position amid growing public debate and reported discussions within government circles regarding the potential privatisation of aspects of ECG’s operations.

“At the personal level, I don't think that ECG should be privatised. And I want to put that on record,” he declared.

According to him, SIGA has not taken an official position yet, as the authority is still analysing the 2024 performance report submitted by ECG.

He disclosed that he had specifically called for a governance analysis to assess the quality of decision-making at ECG, which he believes is critical to understanding the root causes of the operational inefficiencies and controversies in the public domain.

“That report will not necessarily tell us whether ECG should be privatised or not. It needs a much deeper analysis,” he noted.

 “ECG is not just like any other business out there. It's a strategic institution—it affects every household, every business, and every opportunity in this country.”

While acknowledging the need for reforms, Prof. Kpessa-Whyte was firm in stating that privatisation is not the only path to efficiency. Instead, he pointed to other alternatives within the framework of new public management, such as “contracting out” and “outsourcing” specific operations to private entities to inject efficiency without giving up state ownership or control.

“We can do contracting out... so that it can inject some efficiency into the operations of ECG,” he explained. “You can do it in such a way that the state retains its assets, retains control and everything—it’s just the managerial bit that is reviewed.”
SIGA’s role and involvement

Asked whether SIGA is directly involved in ongoing discussions regarding ECG’s potential privatisation, Prof. Kpessa-Whyte responded in the negative. He said while SIGA has not been formally involved in the committee processes, informal engagements have been taking place.

He also corrected media reports suggesting that a ministerial committee was established to explore privatisation options, stating instead that the committee’s mandate is to consider various strategies for enhancing ECG’s efficiency.

“We don’t decide for the minister how the policy direction should be. But based on SIGA’s mandate, we expect that at some point, we will be brought in formally.”, he stressed.

He added that should SIGA identify any issue with potential long-term negative implications for ECG, the Authority would proactively alert both ECG’s management and the Energy Ministry.

Prof. Kpessa-Whyte further revealed that an internal assessment of ECG is ongoing, following a similar exercise recently completed on the Ghana Integrated Iron and Steel Development Corporation (GIISDEC).

He said the ECG report is expected to provide actionable insights on how the company can improve its financial performance, service delivery, and overall operational efficiency.

“We are looking through the different issues that have been reported in the press. Some may have truth, some may be sensational. The ECG report will help us advise on what needs a second look,” he said.