ECG Audit Exposes "Unusual" GH¢400m Payment to Private Vendor

Accra, Ghana - 12 Feb, 2025 - A financial audit of the Electricity Company of Ghana's (ECG) 2024 accounts has uncovered staggering financial discrepancies, including a GH¢400 million payment to a private vendor and a GH¢5.3 billion revenue under-declaration.

The audit, conducted by PricewaterhouseCoopers (PwC), has raised concerns about mismanagement, financial inefficiencies, and potential corruption within the power distribution company.

The payment to the vendor, which was made before ECG officially declared its revenue collections, violates financial transparency and accountability standards. The Cash Waterfall Mechanism (CWM), introduced to ensure equitable revenue distribution among power sector players, was seemingly flouted by ECG, which prioritized payments to the private vendor over power generation companies.

These revelations come at a critical time for Ghana's power sector, which has been plagued by financial instability, debt accumulation, and growing concerns over electricity supply sustainability. The audit's findings have sparked speculation about the extent of financial mismanagement within ECG and the potential consequences for the country's power sector.

The PwC report's findings are the latest in a series of financial discrepancies uncovered at ECG. A previous audit report revealed a GH¢490 million revenue gap, highlighting the need for greater transparency and accountability within the company.

As Ghana's power sector continues to grapple with financial instability, the government and regulatory bodies are under pressure to address the systemic issues plaguing the industry.

Source: Lead News Online