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in Extractives/Energy, Business

ECG Repays GH¢1.3bn Tax Debt as Energy Agencies Face PAC Scrutiny

Ivy Opoku Mintahby Ivy Opoku Mintah
October 16, 2026
Reading Time: 9 mins read
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Public Accountability Committee

Public Accountability Committee

The Electricity Company of Ghana (ECG) has repaid GH¢1.3 billion of the GH¢1.4 billion in taxes it owed the Ghana Revenue Authority (GRA), earning commendation from Parliament’s Public Accounts Committee (PAC) as energy-sector institutions faced scrutiny over financial compliance, regulatory enforcement and the management of public assets.

The repayment follows irregularities identified in the 2025 Auditor-General’s Report and represents a substantial reduction in ECG’s outstanding tax obligations.

However, the remaining balance raises questions about the company’s ability to settle its liabilities fully and sustain compliance with its statutory financial responsibilities.

The development emerged when the Ministry of Energy and its departments and agencies appeared before PAC.

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The committee also examined issues involving vehicle licensing, petroleum-sector enforcement, pipeline safety and the use of state-owned properties.

Taken together, the issues reveal the breadth of the governance challenges confronting Ghana’s energy institutions.

While ECG’s repayment demonstrates progress in addressing an identified financial liability, the proceedings also raise a broader question: whether corrective measures are translating into lasting improvements in institutional performance.

ECG’s Tax Repayment Offers Progress, but Full Compliance Remains Key

ECG’s repayment of GH¢1.3 billion out of GH¢1.4 billion in outstanding taxes marks significant progress in addressing the liability identified in the Auditor-General’s findings.

The amount repaid represents approximately 93% of the original debt, leaving about GH¢100 million outstanding. Although PAC commended the company’s efforts, the remaining obligation means the process is not yet complete.

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Photo from the engagement
Photo from the engagement

The more consequential question is whether the repayment reflects a sustained improvement in ECG’s financial discipline or a response to the pressure generated by audit findings and parliamentary oversight.

For a utility central to electricity distribution and revenue collection, tax compliance is part of a wider financial-management challenge.

Its ability to meet statutory obligations is relevant not only to its relationship with the tax authority but also to confidence in its internal controls and financial governance.

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The repayment therefore needs to be assessed alongside the outstanding balance, the circumstances that led to the original liability and the safeguards introduced to prevent similar irregularities.

Without those details, the reduction in the debt is a positive outcome, but not sufficient evidence that the underlying weaknesses have been resolved.

NPA Tightens Enforcement Over Vehicle Licensing

The National Petroleum Authority (NPA) also reported progress in enforcing licensing requirements among vehicles operating within the petroleum sector.

NPA Chief Executive Officer Godwin Kudzo Tameklo told the committee that, “as of May 2026, 93% of the vehicles concerned had obtained the required licences, while the remaining 7% had been suspended from operation because they were unlicensed.”

The figures indicate that most of the vehicles had met the licensing requirements by the reporting date, but they also show that a portion of the fleet remained outside the applicable regulatory framework.

NPA CEO Godwin Tameklo
NPA CEO Godwin Tameklo

For petroleum transportation, licensing is an important control for monitoring operators and ensuring compliance with the standards governing fuel movement.

The suspension of unlicensed vehicles demonstrates an enforcement response, although the longer-term test will be whether the remaining operators regularise their status and whether compliance is sustained.

The NPA’s update also highlights the importance of distinguishing between the existence of regulatory requirements and their effective implementation.

Licensing figures provide a snapshot of compliance; continued monitoring is needed to establish whether operators remain compliant over time.

Fuel Siphoning From Tanker Crashes Raises Safety Concerns

Tameklo also warned the public against siphoning fuel from tanker trucks involved in road crashes, stressing that the practice is illegal and punishable.

The warning addresses a serious public-safety concern surrounding petroleum transportation. Attempts to collect fuel spilled during an accident can expose people to fire and other hazards, while the presence of crowds around a damaged tanker can complicate emergency response efforts.

Photo from the engagement
Photo from the engagement

The issue extends beyond individual behaviour to the systems required to manage accidents involving hazardous petroleum products.

Public education, rapid emergency response and effective enforcement all have roles to play in preventing dangerous conduct at crash scenes.

The NPA’s warning reinforces the legal consequences of fuel siphoning, but the wider policy challenge is ensuring that the public understands the risks and that the relevant authorities can secure accident sites quickly enough to prevent avoidable harm.

Petroleum Commission Signals Sanctions for Violations

The Petroleum Commission has indicated that violations of applicable requirements will attract sanctions, including administrative penalties.

Deputy Chief Executive Officer Nasir Alfa Mohammed conveyed the regulator’s position during the engagement with PAC, reinforcing the Commission’s responsibility to ensure compliance within the petroleum industry.

Hon Abena Osei Asare, PAC Chair
Hon Abena Osei Asare, PAC Chair

Administrative penalties can provide regulators with a means of responding to breaches, but their deterrent value depends on consistent application, clear regulatory expectations and the willingness to act against offending operators.

For Ghana’s petroleum industry, credible enforcement is important because compliance failures can carry operational, financial and safety consequences. Regulatory requirements have limited value if violations do not result in meaningful consequences.

The committee’s engagement therefore raises a wider institutional question about how regulators measure the effectiveness of enforcement.

Beyond announcing sanctions, evidence of consistent implementation and improved compliance would help demonstrate whether regulatory interventions are achieving their intended results.

PAC Questions Ghana Gas Over Unused Properties

Ghana National Gas Company Limited also faced scrutiny over unoccupied office properties in Kumasi and Takoradi.

Chief Executive Officer Judith Adjobah Blay addressed the issue before the committee, which urged the company to put the facilities to productive use or dispose of them if they were no longer needed.

The intervention places public asset management at the centre of the discussion. Properties held by state-owned companies should serve a defined operational purpose or be managed in a way that protects their value.

Public Accountability Committee
Public Accountability Committee

Leaving facilities unused may represent an opportunity cost, particularly if they require maintenance while generating no corresponding operational benefit.

However, a decision to occupy or dispose of the properties should be informed by their condition, market value, future operational requirements and the costs associated with retaining them.

Disposal should not become an automatic response if the facilities could serve a legitimate business purpose.

The central accountability issue is whether Ghana Gas can demonstrate that its property holdings are necessary, economically justified and managed in the public interest.

PAC’s recommendation puts the responsibility on the company to explain how the assets will be dealt with rather than allowing their unused status to persist without a clear plan.

Pipeline Safety and Community Infrastructure Commitments

Ghana Gas also outlined public awareness measures intended to prevent encroachment on pipeline infrastructure, including risks associated with illegal mining, commonly known as galamsey.

Encroachment can expose critical infrastructure to damage and create hazards for nearby communities.

Public education is therefore an important component of pipeline protection, particularly where communities and economic activities operate near infrastructure corridors.

Deputy Minister for Energy and Green Transition Richard Gyan-Mensah at the PAC meeting
Deputy Minister for Energy and Green Transition Richard Gyan-Mensah at the PAC hearing

However, awareness campaigns alone cannot guarantee safety. Their effectiveness depends on sustained engagement, monitoring, coordination with relevant authorities and action against activities that threaten pipeline integrity.

Ghana Gas’s response should consequently be assessed not only by the awareness measures announced but also by whether those interventions help prevent encroachment and reduce risks around its infrastructure.

Blay also assured the committee that the company’s corporate social responsibility projects involving senior high school infrastructure would be completed by the end of the year.

The commitment provides a deadline against which delivery can be assessed. Completion will be the immediate test, while the longer-term value of the projects will depend on whether the facilities meet the intended needs of beneficiary schools.

For a state-owned company, such commitments also carry an accountability dimension: announced projects should translate into completed infrastructure, with delivery assessed against the timelines and objectives communicated to the public.

Accountability Must Extend Beyond Audit Findings

The PAC proceedings demonstrate that accountability across Ghana’s energy sector involves more than identifying irregularities after they occur.

It also requires evidence that institutions are correcting weaknesses, enforcing standards, managing public assets efficiently and delivering on commitments.

ECG’s repayment is a measurable step towards settling its tax debt, but the outstanding balance remains to be addressed.

The NPA’s licensing figures point to progress alongside continuing enforcement needs, while the Petroleum Commission’s position highlights the importance of consequences for regulatory breaches.

Photo from the engagement at PAC meeting
Photo from the engagement at PAC meeting

At Ghana Gas, the questions surrounding unused properties and the commitments on pipeline safety and school infrastructure bring asset utilisation, risk management and project delivery into focus.

These responsibilities differ, but they share a common test: whether public institutions can demonstrate that corrective measures produce lasting and verifiable results.

The next stage of accountability will depend on what happens after the committee’s engagement.

ECG must address its remaining liability; regulators must sustain compliance and enforcement; and Ghana Gas must demonstrate that its assets are being used appropriately and that its stated commitments are delivered.

For Ghana’s energy sector, the significance of the proceedings will ultimately be measured not by the assurances given during parliamentary scrutiny, but by whether those assurances translate into stronger financial controls, safer operations, better asset management and demonstrable institutional performance.

READ ALSO: GSE Trades 6.87 Million Shares as MTN Ghana Leads Volume

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