Northern Electricity Distribution Company (NEDCo) employees are calling for the Managing Director, Osmani Aludiba Ayuba, to be fired after accusing him of poor performance.
In a petition presented to the company’s Board of Directors, the staff cited, among other things, NEDCo’s “worse financial performance, lack of a clear strategy for the company, exorbitant sole source procurement of point-of-sale devices, and worsening distribution losses” to support their demand.
They also stated that the company has regressed since Mr. Ayuba took over as CEO three years ago.
“The net financial loss of NEDCo instead of improving has deteriorated from GH¢315.398 million in 2018 to GH¢392.406 million as of September 2022. The estimated net loss for 2022 is over GH¢400 million. This means NEDCo’s performance deteriorated by at least 24% over the period,” the staff said in the petition sighted by OilCity Radio.
They add that the “cash flow situation of NEDCo is worsening every day. As a result, NEDCo is unable to pay most of its suppliers and contractors. As of September 2022, NEDCo was indebted to its major suppliers to the tune of GH¢1.8 billion. NEDCo is struggling to raise Letters of Credit to procure critical materials and equipment required for its operation under the watch of Mr. Ayuba.”
As part of steps to press home their demand, NEDCo employees began hoisting red banners across all operational areas and service centers on Wednesday, February 1.
According to the petition, the distribution loss alone in Tamale is estimated to be 12 million cedis in revenue loss each month.
They also alleged that the managing director and his team of leaders wasted over $40 million on pointless projects over the last three years.
Meinergy Technology’s GH57.68 million contract to supply and install 40,300 Smart Split Prepaid Meters in Tamale is not producing the desired results for NEDCo. 60% of the over 24,000 Longi Meters deployed so far do not have the new PURC-approved tariff that goes into effect on September 1, 2022, owing to integration issues with the Hexing Billing System.
“For almost 5 months, NEDCo management is unable to ensure that the affected customers pay the right tariff for the power consumed. It is estimated that NEDCo has lost GH¢2.2 million in revenue over the 5-month period.”
Adding that, “about 11,000 of the meters were also given free of charge to customers without them paying the required new service fees. This has occasioned an estimated loss of GH¢7.7 million in revenue.”
Meanwhile, the Board of Directors has asked the disgruntled employees to be patient and allow them to resolve their complaints.
Read the full petition here
UPDATE-TO-ALL-STAFF-ON-RESOLUTION-FOR-THE-REMOVAL-OF-MD-NEDCO
