….And snatches ECG job
In a surprise turn of events, Julius Kwame Kpekpena, has been appointed the Managing Director of the Electricity Company of Ghana (ECG), leaving political observers and industry insiders stunned.
Kpekpena, a former employee of ECG, who left the company to join the Millennium Development Authority (MiDA) in 2017, is now returning to lead the organisation he once departed.
His role at MiDA, was pivotal in implementing the Private Sector Participation (PSP) initiative for ECG.
This venture ultimately failed, leading to the controversial Power Distribution Services (PDS) scandal, in which the opposition NDC, promised to investigate and punish the perpetrators.
This appointment raises eyebrows, as Kpekpena, is widely viewed as a central figure in the debacle, which involved politically exposed persons, fake insurance guarantees, and financially incapable partners.
Julius Kpekpena’s tenure at MiDA, is closely linked to the PDS scandal, a saga that shook Ghana’s energy sector and left the nation spending almost US$20 billion to support the power sector.
The initiative aimed to bring private sector efficiency into ECG through a concession agreement, but it was marred by manipulation, self-interests and political interference.
Key actors, including then Finance Minister Ken Ofori-Atta and Gabby Otchere-Darko, both powerful cousins of President Nana Akufo-Addo, were accused of orchestrating the takeover of ECG’s assets through proxies with questionable credentials. The Herald, was key in exposing the rot at the time.
At the heart of this controversy was the insurance guarantee provided by PDS, which was later found fraudulent. The arrangement involved politically exposed persons and partners who lacked the financial capacity to deliver on the takeover.
Critics argue that Kpekpena, responsible for overseeing the PSP initiative at MiDA, turned a blind eye to the irregularities, compromising MiDA’s independent oversight role. They claim this enabled a scheme rooted in political influence and kleptocracy, undermining the credibility of the privatisation effort and waving the Bank guarantee needed to securitise Ghana’s interest in the transaction.
Before Kpekpena’s appointment, the frontrunners for the top job at ECG, were the Acting Managing Director, David Adomako, Dubik Mahama, and his protégé, Emmanuel Baiden.
Dubik Mahama, saw himself as a strong contender, having previously held the position before resigning under pressure from allegations of financial improprieties, including the controversial Hubtel deal.
The deal allegedly created a revenue stream for a private company without channelling the funds into ECG’s mandated cash waterfall mechanism, raising questions about financial accountability.
Dubik Mahama was confident of a political comeback, following the change in government and lobbied vigorously for the position.
However, after failing to secure the necessary support and backlash from the public on some of his comments in the media, he shifted his backing to Emmanuel Baiden, a junior staff member he had promoted to a director position, bypassing more seasoned professionals within the company.
Emmanuel Baiden, often called the “numbers guy” at ECG, is known for his role in structuring complex financial deals.
Many in the company blame him for orchestrating Power Purchase Agreements (PPAs) during the emergency power procurement of 2015, significantly burdening ECG’s financials.
His reputation as a political operator grew after his involvement in these high-stakes negotiations, but his career hit a snag in 2017 when then-Energy Minister Boakye Agyarko interdicted him.
Agyarko initiated an investigation after an embassy flagged a substantial USD bank balance in Baiden’s account, linked to a visa application by his wife. The large sum raised suspicions of financial misconduct, leading to his temporary suspension.
However, Baiden swiftly returned to ECG after Agyarko’s removal from office in 2018. He became a strategic ally to Dubik Mahama, leveraging his financial acumen to influence key deals behind the scenes.
Despite his low-profile approach, Baiden’s influence was significant, leading to speculation that the current Energy Minister, John Jinapor, supported his candidacy for the top job.
However, concerns about potential backlash from ECG staff and management made his appointment politically sensitive. Many observers expected an external candidate to be chosen, making Kpekpena’s comeback even more unexpected, though he left the company a few years back.
Julius Kpekpena’s appointment has stirred political tensions within the ruling NDC, which had previously vowed to investigate the PDS scandal. Given his controversial role in the failed privatisation attempt, his return to ECG raises questions about the government’s commitment to transparency and accountability regarding the clandestine event surrounding the PDS deal.
Some party members are reportedly disgruntled by the decision, fearing it could compromise any meaningful investigation into the PDS transaction.
This development complicates the NDC’s narrative, as Kpekpena is perceived as one of the architects of the PDS structure, which was criticised for involving politically exposed persons and financially unstable partners. Critics see his strategic manoeuvring at MiDA as a deliberate effort to enable political allies to control ECG’s assets through proxy arrangements.
Julius Kpekpena’s appointment is being viewed by some as a masterstroke of political manoeuvring, effectively sidelining his rivals while positioning himself at the helm of one of Ghana’s most strategic state-owned enterprises. In a political landscape where influence and connections often determine career trajectories, Kpekpena’s rise to power is a testament to his strategic acumen- call is a double game, and you will not be wrong. Having supported the machinations of the Akufo Addo family and now getting appointed by the NDC, not many have succeeded in this kind of game.
However, the decision also carries significant political risks. By appointing a figure so closely linked to the PDS scandal, the NDC risks alienating segments of its support base that expected accountability and reform in the energy sector.
It also provides ammunition to political opponents, who may question the integrity of the government’s anti-corruption agenda and may want to spite Kpekpena for breach of trust.
The return of Julius Kwame Kpekpena to ECG as Managing Director is a development loaded with political and economic implications. His controversial legacy from the PDS scandal looms, casting a shadow over his leadership credibility.
As he takes the reins of ECG, he faces the dual challenge of restoring public trust and steering the company toward financial stability.
His ability to navigate the political undercurrents and manage the expectations of a divided workforce will be critical in determining his success. Moreover, his appointment poses a litmus test for the NDC government’s commitment to accountability, as many stakeholders will be watching closely to see how the administration handles the lingering questions surrounding the PDS scandal.
In the high-stakes world of Ghanaian politics and energy sector dynamics, Julius Kpekpena’s ascent is nothing short of a political dribble—a masterclass in outmanoeuvring rivals and securing power. However, whether this move will lead to sustainable leadership or political backlash remains to be seen. The spotlight is now on Kpekpena and the government, and the stakes could not be higher.
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