EGTC alleges loss of independence as EDSA owes NLe 589m

EGTC alleges loss of independence as EDSA owes NLe 589m
Energy Generation and Transmission Company (EGTC) and Electricity Distribution and Supply Authority (EDSA)

The parliamentary Public Accounts Committee heard sharp accusations from the Energy Generation and Transmission Company (EGTC) which said the Electricity Distribution and Supply Authority (EDSA) owes it NLe 589 million and has stripped it of independence.

At a hearing on Wednesday, EGTC officials told lawmakers the debt has built up over several years and that EDSA’s control of its finances has effectively reduced the company to “a department” under EDSA rather than a partner in the power sector.

“We have been begging PAC for EDSA to allow us to operate as an independent entity. At the moment, it looks like we are just a department under them,” an EGTC representative said.

All revenues from electricity sales go into a central account managed entirely by EDSA, according to EGTC. From that account, EDSA pays suppliers, salaries and even expenses on EGTC’s behalf.

Officials said the arrangement leaves EGTC without financial records of its own, weakens accountability and prevents it from managing its resources.

“Ideally, EDSA should pay us for the power we generate, and we in turn pay our suppliers. That was how it used to work,” the representative said. “But now, even some of our suppliers are being paid directly by EDSA.”

EGTC said it has turned to the Electricity and Water Regulatory Commission (EWRC) for approval of a new “Power Purchase Agreement,” which would allow it to operate independently and receive direct payment for electricity generated.

“We want a new agreement that will give EGTC its long-sought independence,” the official said. “We are appealing for PAC’s support in making this possible.”

Hon. Aaron Koroma urged committee members not to rush into a decision. He suggested both EGTC and EDSA appear together before PAC for clarification.

The committee’s deputy chairman, Desmond Hawayei, who presided over the session, said the matter would be investigated further and confirmed that EDSA would be invited to respond at the next hearing.

The dispute highlights long-standing challenges in Sierra Leone’s energy sector, including accountability, financial management and the push for reforms.

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