The Auditor-General of Ghana has reported significant breaches by the Electricity Company of Ghana (ECG) regarding their procurement practices. The audit, which reviewed transactions from 2016 to 2021, found that the ECG violated the Public Procurement Act in the purchase of meters and accessories worth over $145 million. The audit, conducted between August and December 2022, covered various ECG locations. These included the headquarters, the Metering and Technical Services (MTS) Division, the Materials and Depot in the Greater Accra Region, and selected regional and district offices. The findings highlight serious lapses in compliance and management.
The report states that the ECG signed 50 contracts to procure 862,750 meters and accessories amounting to $145,010,153.92. These contracts were executed without adhering to the requirements of the Public Procurement Act. The lack of compliance with procurement laws raises questions about transparency and accountability within the organization. Moreover, the Auditor-General’s report revealed that the ECG failed to recover a surplus of GH53.9 million. This surplus was identified through monitoring efforts, but the company did not take appropriate measures to recover the funds. This lapse represents a significant financial loss that could have been mitigated with more diligent oversight.
The report also noted that ECG did not pursue legal action against customers involved in electricity theft. This inaction missed an opportunity to deter future theft and recover lost revenue. By not prosecuting these cases, ECG failed to enforce the law and protect its financial interests. The audit findings prompted Auditor-General Johnson Akuamoah Asiedu to address a letter to the Speaker of Parliament on June 2, 2023. In his letter, he emphasized the importance of adherence to the Public Procurement Act and recommended that ECG ensure all future procurement activities comply with the law.
This report brings to light the ongoing issues within ECG’s procurement processes. The violations of the Public Procurement Act undermine the integrity of the company’s operations and highlight the need for stricter oversight and accountability. In response to the Auditor-General’s report, ECG must take immediate steps to address the identified breaches. This includes reviewing and strengthening their procurement processes to ensure compliance with the law. The company must also recover the identified surplus and take legal action against those involved in electricity theft.
These steps are crucial to restoring public confidence in the ECG and ensuring that public funds are used efficiently and effectively. The company’s management must demonstrate a commitment to transparency, accountability, and good governance. The Auditor-General’s report is a wake-up call for ECG and other public sector organizations. It emphasizes the importance of adherence to procurement laws and the need for effective oversight mechanisms.
