Jinapor Orders Investigation into ECG's GHS 1.5bn Container Debacle
Accra, Ghana - 16 Feb, 2025 - Ghana's Energy Minister, John Abdulai Jinapor, has launched an investigation into the Electricity Company of Ghana's (ECG) procurement activities during the previous administration, citing "frivolous procurements" that have resulted in significant financial losses.
Approximately 3,000 ECG containers are currently stranded at the ports, accumulating demurrage costs estimated at GHS 1.5 billion. In an interview with TV3, Jinapor described the situation as "unacceptable," revealing that some of the procured items will last up to ten years, while others will expire in just five years.
A five-member committee has been established to investigate ECG's general procurement practices, the cost of the containers, and the liabilities involved. The committee, chaired by Prof. Innocent Senyo Akwasi, has been given a one-month deadline to submit its findings.
Preliminary reports indicate that former ECG managers failed to adhere to proper procurement processes and guidelines, prompting the Minister to announce plans for a broader audit of the energy sector. This will include a human resource and technical review to identify inefficiencies and implement strategic policies to enhance the sector's performance.
“It’s all because they are engaged in what I call very frivolous procurements. Now, they have about 3,000 containers stuck at the ports, generating demurrage of about GHS 1.5 billion, which is very unacceptable. Some of the things they’ve procured will last them ten years, some will even expire in five years,'' he stated.
“So we’ve commissioned a committee to investigate ECG’s procurements and the cost of these containers stuck at the ports. The committee is doing a very good job.''
“So far, the preliminary reports I have gotten indicate that there’s massive rot at ECG.”
“But beyond that, there will be another technical report. What the PwC has done is a financial audit. We want to do a human resource audit, a deeper audit of the entire energy sector, which will then give us a clear picture of the inefficiencies so that we can tailor that in terms of our policy objective and policy directive to address this,'' Jinapor added.
Source: Lead News Online
