Copyright ghanaguardian
The Electricity Company of Ghana (ECG) has begun a comprehensive review of all major contracts, including its partnership with fintech firm Hubtel, as part of efforts to strengthen compliance and ensure value for money in line with the Public Financial Management (PFM) Act. Appearing before the Public Accounts Committee (PAC) of Parliament on Tuesday, October 28, 2025, Acting Managing Director Julius Kpekpena said the company has engaged a legal consultant to assess its key agreements and align them with the requirements of the law. “In fact, we just engaged a lawyer to help us review all our contracts, our major contracts, and the Hubtel contract is one of them, so that we can align all our contracts to applicable law," he said. He explained that the PFM Act mandates ECG to collect and settle all revenues at their gross value, meaning no deductions should be made before funds are transferred to the company. “The PFM Act requires that we collect the money at gross and that Hubtel settle us at gross,” he said. Clarifying the process, Mr. Kpekpena noted that under the gross settlement model, Hubtel is responsible for paying the relevant mobile money and card transaction fees before invoicing ECG for reimbursement. “For Hubtel to settle us at Gross, they will need to pay mobile money. The Momo fee that MTN or Telecel will collect. Those who pay with a Visa card will need to pay those people on our behalf and then give us an invoice. Then we pay them before they go and pay the mobile money companies and the card providers.” He acknowledged that this structure could result in ECG absorbing additional costs under the new arrangement. The review follows ECG’s recent decision to reduce Hubtel’s commission from 3 percent to 1.65 percent as part of broader efficiency and cost-control measures. Hubtel, a leading Ghanaian fintech company, manages ECG’s digital payment systems — facilitating transactions through mobile money, card payments, and other online platforms. The partnership is considered central to ECG’s digital transformation agenda and the government’s wider push toward cashless, transparent public payments.
