The Minister of Energy and Green Transition John Abdulai Jinapor has raised serious concerns about financial irregularities at the Electricity Company of Ghana (ECG), revealing that a staggering GHS 5.3 billion remains unaccounted for due to ECG’s failure to declare collected funds.
Jinapor explained that ECG must deposit all collected revenue into a holding account before it is distributed via the cash waterfall mechanism committee. However, ECG has allegedly withheld and misused these funds, leading to severe consequences for Ghana’s power sector.
In addition to financial mismanagement, Jinapor revealed ECG’s procurement inefficiencies, which have led to huge financial losses.
“They have about 3,000 containers stuck at the port, generating demurrage of about GHS 1.5 billion. That is unacceptable! – Some of the things they’ve procured will last them ten years. Some would even expire in five years.
So far, the preliminary report I’ve gotten indicates that there’s massive rot at ECG. They do not follow procurement guidelines. They do not follow procurement processes. They do not conduct a needs analysis, and they just engage in brazen procurement.”
To curb the financial hemorrhage, the Minister has issued a strong memo to ECG, directing the company to pay all collections into a dedicated account.
“And this month February, I intend to monitor that. ECG must learn to live within its means. They came and tried to justify why they would want to withhold that money, but I’ve overruled that as minister.
The policy is that all these monies ought to be accounted for in a dedicated account.”
Jinapor also addressed the issue of “initial deductions” by ECG, amounting to GHS 250 million, and vowed to stop the practice, while emphasizing the need to review ECG’s multi-year contracts, especially since many were not approved by Parliament.
He also mentioned a single company that made over GHS 400 million in a single year through a contract with ECG from January- December 2024, that he finds problematic, promising his determination to reassess such agreements and ensure value for money.
The Minister assured the public that the government is committed to addressing ECG’s financial and operational inefficiencies, with full backing from President Mahama to implement reforms, further noting that ECG’s financial difficulties are not solely due to internal mismanagement but are also influenced by macroeconomic factors, including exchange rate fluctuations.
These revelations by Minister John Abdulai Jinapor expose deep-rooted financial and operational issues at ECG. His firm stance on accountability, procurement reforms, and contract reviews aims to restore efficiency and financial discipline within Ghana’s power sector.
As investigations continue, the government is expected to take decisive action against those responsible for the mismanagement of public funds, to ensure accountability and value for money.