Home Economy Ngafuan, Paye Take Giant Step …To Improve LEC’s Financial Capability

Ngafuan, Paye Take Giant Step …To Improve LEC’s Financial Capability

by News Manager

MONROVIA: The Government of Liberia (GoL), through the Ministry of Finance Development and Planning (MFDP), and Ministry of Mines and Energy (MME), has signed an official circular to improve the Liberia Electricity Corporation (LEC’s) financial viability.

The circular signed by both the Ministers of Finance and Development Planning and Mines and Energy, Augustine Kpehe Ngafuan and Wilmot J. M. Paye respectively is intended to prevent the accumulation of arrears for unpaid electricity consumption by government institutions.

According to the circular, the Act creating the MFDP mandated it to formulate, institutionalize and administer economic development, fiscal and tax policies and regulations for the promotion of sound and efficient public financial management.

The circular stated that the Act creating the Ministry of Mines and Energy (MME) empowered the Minister to exercise statutory oversight for the energy sector which includes the Liberia Electricity Corporation (LEC).

“Whereas, the Act creating the LEC mandates the Corporation to distribute energy to the public and generate revenue from said distribution for Corporations,” the official circular stated.

MME and MFDP, highlighted that public institutions have failed to meet their obligations of settling postpaid electricity bills to the LEC.

The circular added that failure of government institutions to meet their energy debt obligations to the LEC has caused the institution huge revenue losses, a situation which is impeding its smooth operations.

However, the MME and MFDP directed all public sector consumers excluding public health institutions and health facilities to complete conversion to prepaid electricity meters within the period of one-year from the effective date.

The MME and MFDP also directed all public sector consumers including public health institutions and health facilities to make allocations in their institutional budgets for their electricity consumption.

“Pursuant to this circular, it is hereby directed that all concerned adhere to these directive effective November 1, 2024,” the circular stated. Writes Linda Gbartie

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