Copyright ghanaguardian
The Electricity Company of Ghana (ECG) is under intense public and parliamentary scrutiny following revelations of massive budget overruns uncovered during a Public Accounts Committee (PAC) sitting in Parliament. Executives of the power distribution company, led by the Chief Executive Officer, appeared before the committee to respond to findings in the 2024 Auditor-General’s Report, which cited unapproved expenditures totalling GH¢189.2 million. The Ranking Member of the Committee, Samuel Atta Mills, expressed strong disapproval of the company’s financial conduct, describing it as a “display of fiscal indiscipline” and a clear disregard for due process. He noted that ECG had significantly exceeded its approved budget across multiple expenditure categories, calling the figures “alarming and unacceptable.” “On staff fuel, ECG budgeted GH¢2.8 million but spent GH¢3.6 million. Did they drive around the world?” he quipped. According to Mr. Atta Mills, the Auditor-General’s report revealed several areas of exorbitant spending, including: Staff fuel: GH¢2.8 million budgeted; GH¢3.6 million spent. Communication costs: GH¢4.2 million budgeted; GH¢7.9 million spent. Consultancy services: GH¢40 million budgeted; GH¢58.6 million spent. Industrial relations: GH¢2 million budgeted; GH¢13 million spent. Stakeholder engagement: GH¢3.1 million budgeted; GH¢49 million spent. Publicity: GH¢5.7 million budgeted; GH¢21.8 million spent. Professional fees and subscriptions: GH¢731,000 budgeted; GH¢1.5 million spent. Overseas travel: GH¢14 million budgeted; GH¢29.8 million spent. Call centre operations: GH¢23.5 million budgeted; GH¢29.3 million spent. Mr. Atta Mills described the situation as “financial recklessness”, urging the enforcement of sanctions under Section 96 of the Public Financial Management Act (Act 921) against those responsible for the overspending. “This level of recklessness cannot go unpunished. Those managers involved should face the Attorney-General for prosecution — it’s that simple,” he stressed. The revelations have reignited public concern over accountability within ECG, particularly as the company continues to advocate for higher electricity tariffs amid persistent billing challenges and operational inefficiencies. Lawmakers on the committee have called for tighter financial controls and stronger oversight to ensure that the state-owned utility operates within its approved financial limits and upholds the principles of fiscal responsibility.
