Prof. Stephen Kwaku Asare, a Democracy and Development Fellow at CDD-Ghana and legal expert, has raised serious concerns about a procurement scandal involving the Electricity Company of Ghana (ECG).
According to him, the incident underscores systemic inefficiencies and potential corruption within the public sector.
“According to the energy minister, a container of electrical equipment worth $500,000 was left unclaimed at the port, presumably because ECG was unable or unwilling to clear it.
“The equipment was auctioned off for a mere GH₵100,000 (approximately $7,000) before being resold back to ECG for $300,000. The sheer scale of the financial loss is staggering, but even more alarming are the unanswered questions surrounding this transaction.”
Prof. Stephen Kwaku Asare
Accordingly, Asare raised critical concerns about the underlying reasons behind ECG’s inability to clear the container from the port.
He questioned whether the situation stemmed from a genuine lack of funds, inefficiencies within the bureaucratic system, or a more deliberate and questionable motive.
If the issue was financial, he sought clarity on the exact amount ECG was unable to pay.
He also highlighted the troubling implication that a key public institution, essential to Ghana’s infrastructure, might have been so financially constrained that it could not cover the import duties for equipment crucial to its operations.
He further asked, “Or was this a deliberate abandonment, allowing insiders to manipulate the system for personal gain?“
Asare argued that if ECG genuinely lacked the funds to pay the import charges, then it would have been reasonable for the auction price to at least match or exceed the outstanding fees.
However, he pointed out that the equipment was instead sold at a significantly lower price, raising concerns about how such a valuation was determined.
He questioned the process behind setting the auction price at a mere GH₵100,000, which was only a fraction of the equipment’s true market value.
Additionally, he sought clarification on who was responsible for conducting the valuation and whether due diligence was followed in determining a fair price. “Why was there no safeguard in place to prevent gross underpricing?“
Asare stressed that it was only logical for assets of this nature to be sold at a price that accurately reflected their true value or, at the very least, covered the debt owed to the port authorities.
The fact that this standard was not upheld, he argued, pointed to either a severe lapse in competence or a deliberate scheme designed to manipulate the system for personal gain.
Asare Questions Dubious Auction
Furthermore, Prof. Stephen Kwaku Asare raised concerns about the transparency of the auction process, questioning who acquired the equipment at such an astonishingly low price and under what specific conditions the transaction took place.
He emphasized the need to determine whether the auction was publicly advertised to allow for competitive bidding or if it was conducted behind closed doors to favor a select group of individuals.
He also highlighted a troubling pattern in the procurement process, pointing out that the same equipment, initially auctioned off at a giveaway price, had resurfaced in the procurement records of ECG at an inflated value—nearly 40 times its original auction price.
This, he argued, strongly indicated the possibility of collusion at multiple levels, suggesting that the entire transaction was orchestrated to benefit insiders at the expense of the public purse.
“Given the staggering financial loss involved, one would expect swift action—interdictions, suspensions, arrests. But so far, no one has been held accountable. Instead, the usual silence.
“This raises a more troubling possibility: Is this a one-off scandal, or is this part of a systemic scheme to siphon public funds under the guise of procurement inefficiencies? This is not the first time ECG has been accused of financial mismanagement. Over the years, its books have been plagued with questionable transactions, inflated contracts, and operational inefficiencies.”
Prof. Stephen Kwaku Asare
Asare pointed out that the unfolding scandal follows a familiar and troubling pattern, where strategic neglect leads to manipulated auctions, allowing valuable assets to be sold at a fraction of their worth, only to be repurchased later at an inflated cost—ultimately burdening taxpayers.
He stressed that the issue goes beyond a single abandoned shipment, highlighting a deeper problem within public institutions where financial mismanagement and opaque transactions drain resources.
According to him, such inefficiencies are not accidental but rather a systematic approach that prioritizes private gain over public interest, leaving citizens at a disadvantage.
As such, he cautioned that if decisive action is not taken, this trend will only become further entrenched.
The failure to hold those responsible accountable would reinforce a dangerous precedent—one in which public assets can be deliberately mismanaged, sold cheaply, and later reacquired at exorbitant prices, all without repercussions.
Calls for Full Investigation
Moreover, Prof. Stephen Asare emphasized the need for immediate action to address the situation, starting with full disclosure of the port charges.
He called on ECG to provide a clear explanation of why it was unable to clear the container and, if financial constraints were the reason, to specify the exact amount owed.
He also stressed the importance of auditing the auction process, questioning who authorized the sale and whether multiple bidders were involved or if it was a single-party transaction.
He raised concerns about why there was no reservation price set to at least match the outstanding port charges.
Another critical step, he argued, is identifying the beneficiary of the auction—specifically, the individual or entity that purchased the equipment at a significantly undervalued price and later resold it to ECG.
He questioned whether this entity had any connections to officials within the organization.
Additionally, he called for a thorough review of the procurement process, demanding to know who approved the repurchase at an inflated cost and whether proper due diligence was conducted.
Finally, he insisted that if evidence of fraud, collusion, or insider trading is found, those responsible must be prosecuted to ensure accountability and prevent similar incidents in the future.
“…this is a clear case of financial malpractice, whether by negligence or by design (accident according to plan).
“The silence from the ECG is too loud. Look, until accountability is demanded and enforced, scandals like these will continue, costing the public millions and reinforcing a culture where corruption thrives unchecked.”
Prof. Stephen Kwaku Asare
He emphasized that the issue extends beyond ECG, raising a broader concern about whether the country is prepared to tackle financial mismanagement within public institutions or allow it to become yet another fleeting scandal that fades without accountability.
Ending on a pointed note, he drew attention to past unresolved controversies, suggesting that while some mysteries may never be solved, the public deserves transparency.
He stressed that Ghanaians must know the individuals behind the questionable transaction in which electrical equipment worth $500,000 was auctioned for just $7,000—only to be repurchased by ECG at an inflated price of $300,000.
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