ACEP accuses ECG of Exchange Rate discrepancy, demands transparency

Accra, Ghana - The Electricity Company of Ghana (ECG) is facing scrutiny over its handling of exchange rate transactions for power distribution.

 According to Kodzo Yaotse, Policy Lead on Petroleum and Conventional Energy at the Africa Center for Energy Policy (ACEP), ECG has been reporting exchange rates to the Cash Waterfall Committee that are significantly higher than the inter-bank rates, resulting in substantial financial losses.

This discrepancy raises concerns about the financial health of ECG and the broader energy sector in Ghana. 

“This exchange rate manipulation created a net exchange loss of about GH₵6.5 billion in 2022 (from GH₵609 million in 2021) and about GH₵ 7 billion in 2023”, Mr Yaotse said.

ACEP has been seeking transparency through the Right to Information (RTI) process, requesting historical exchange rates used by ECG for its transactions.

 However, according tobhim, ECG has failed to provide this information since May 2024.

"…the requested information is quite extensive and will require some time to compile. All efforts are being made to put together the information requested for submission. We acknowledge your forbearance thus far and implore your continued support as we work towards meeting the request."

Yaotse expressed concerns that the lack of transparency and accountability in ECG's financial practices raises questions about the effective management of public funds and the sustainability of the power sector.

He emphasized that ACEP's investigation highlights a troubling trend with significant implications for Ghana's energy sector.

Mr Yaotse emphasized that this “undermines the ability of ECG to pay the value chain and redirect public resources away from legitimate expenditure programmes.”

Source : Lead News Online