Management of the Northern Electricity Distribution Company (NEDCo) has assured the disgruntled staff of the company that their concerns raised in a petition to the governing board relative to demands for the removal of the Managing Director is being addressed by the relevant authorities.
In view of this, the management of the electricity distribution company have asked the agitating staff to refrain from commenting on the matter in the media space.
The VRA/NEDCo Staff on Wednesday, February 8, 2023, announced a partial withdrawal of their services at all their operational areas. This follows the failure of the Board of Directors to adhere to the demand of the staff the dismissal of the Managing Director, Mr. Osman Aludiba Ayuba.
However, the Managers of the utility service provider in a letter sighted by THE CUSTODIAN Online on Wednesday, noted that, “It has come to the attention of NEDCo Management that some staff groups leaders are engaging the media on current industrial relations matters within NEDCo.”
According to the statement, the Board, in collaboration with the Minister of Energy, is addressing the matter, adding that, management believes that upon scrutiny of the allegations and the respective responses to them by Management, the Board will make an informed decision in the best interest of NEDCo.
“In line with good corporate governance practice and respect for internal structures, Management has provided detailed responses to the issues raised in the petition to the NEDCo Board.”
“Accordingly, we urge all stakeholders (internal and external) to desist from any actions or inactions that will jeopardize the processes that have been activated by the NEDCo Board for an amicable resolution of the impasse” it emphasized.
Background
Meanwhile, the staff in their petition accused Mr. Ayuba of failing to help turn around the finances of company after three and half years of being the helms of affairs.
According to them, the net financial loss of NEDCo instead of improving has deteriorated from GHS315.398 million in 2018 to GHS392.406 million as at September 2022. They maintained that the estimated net loss for 2022 is over GH400million, emphasizing this means NEDCo’s performance deteriorated by at least 24% over the period.
“The cashflow situation of NEDCo is worsening every day. As a result, NEDCo is unable to pay most of its suppliers and contractors. As at September 2022, NEDCo was indebted to its major suppliers to the tune of GHS1.8 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” parts of the petition states.
