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GUTA Rejects Tarrif Hikes, Cites Corruption and Mismanagement In Sector

RGG NewsroombyRGG Newsroom
April 16, 2025
in News, Politics, Top Stories
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The Ghana Union of Traders’ Associations (GUTA) has slammed the latest utility tariff hike announced by the Public Utilities Regulatory Commission (PURC).

GUTA described the increase as unjustified and harmful to both businesses and individual consumers.

Secretary-General Alpha Ajshaban issued a strong statement rejecting the PURC’s stated reasons for the increment.

He said the decision exposes deeper inefficiencies and mismanagement within the utility sector, not genuine economic challenges.

“These reasons do not hold water,” Mr. Ajshaban declared.

He acknowledged that change is necessary, but warned it must not happen at the whim of any institution. He criticized the failure to address inefficiencies and waste before imposing new costs on consumers.

GUTA cited persistent mismanagement at the Electricity Company of Ghana (ECG) and Ghana Water Company Limited (GWCL). The union blamed these issues for ongoing financial shortfalls unfairly passed on to utility users.

Mr. Ajshaban listed five major concerns fueling GUTA’s opposition to the increase.

First, he pointed to inflated procurement costs and financial irregularities that benefit individuals and hurt the state.

Second, he criticized the weak collection of debts, especially from state agencies, which results in unfair charges to others.

Third, he highlighted the lack of serious enforcement against illegal utility connections.

Fourth, he accused the PURC of weak oversight that enables corruption and waste.

Fifth, he cited the scandal over 1,000 missing ECG containers found in Tema and the Central Region.

Ajshaban stressed that stricter management and supervision could prevent many of these revenue losses. He argued that saved funds could support local industries and stabilize the economy.

He said this would reduce import dependency, lower production costs, and strengthen the cedi. GUTA also condemned what it called a culture of personal enrichment in the public service.

“The public sector now appears to be a gold mine for quick self-enrichment,” Ajshaban warned.

He called this trend dangerous and unacceptable for Ghana’s economic future.

Ajshaban urged the government to identify and punish officials who loot or misapply state funds.

Tags: ECGGUTAPURC

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