The Minister of Energy and Green Transition Hon. John Abdulai Jinapor has raised serious concerns about financial irregularities at the Electricity Company of Ghana (ECG). According to him, a staggering GHS 5.3 billion remains unaccounted for due to ECG’s failure to declare collected funds.
Hon. Jinapor explained that ECG must deposit all collected revenue into a holding account before it is distributed via the cash waterfall mechanism committee. However, ECG has allegedly withheld and misused these funds.
“If ECG decides to declare only 1,000,000,000 Cedis what it means is that the 500,000,000 Cedis they keep that money and spend it in-house. So, the 5,000,000,000 Cedis that we are talking about are monies that are collected, but ECG failed to declare those monies and decided to appropriate them and spend them.”
Hon. John Abdulai Jinapor Minister of Energy and Green Transition
The withholding of funds by ECG has led to severe consequences for Ghana’s power sector.
“When they do that, then power producers will not be paid. Generators will not be paid. The transmission grid companies will not be paid. Even the levies, which are statutory and passed by Parliament, will not be paid. And that is where you are having some of this major problem.”
Hon. John Abdulai Jinapor Minister of Energy and Green Transition
In addition to financial mismanagement, Hon. Jinapor revealed ECG’s procurement inefficiencies, which have led to huge financial losses.
“They have about 3,000 containers stuck at the port, generating demurrage of about GHS 1.5 billion That is unacceptable. Some of the things they’ve procured will last them ten years. Some would even expire in five years. So far, the preliminary report I’ve gotten indicates that there’s massive rot at ECG. They do not follow procurement guidelines. They do not follow procurement processes. They do not conduct a needs analysis, and they just engage in brazen procurement.”
Hon. John Abdulai Jinapor Minister of Energy and Green Transition
To curb the financial hemorrhage, the Minister has issued strict directives to ECG.
“I’ve issued a very strong memo to ECG, directing them to pay all collections into a dedicated account. And this month [February], I intend to monitor that. ECG must learn to live within its means. They came and tried to justify why they would want to withhold that money, but I’ve overruled that as minister. The policy is that all these monies ought to be accounted for in a dedicated account.”
Hon. John Abdulai Jinapor Minister of Energy and Green Transition
Hon. Jinapor also addressed the issue of “initial deductions” by ECG, amounting to GHS 250 million, and vowed to stop the practice.
Reviewing Multi-Year Contracts
The Minister emphasized the need to review ECG’s multi-year contracts, especially since many were not approved by Parliament.
He also mentioned a single company that made over GHS 400 million in a single year through a contract with ECG from January 2024 -December that he finds problematic. Hon. Jinapor is determined to reassess such agreements and ensure value for money.
“I intend that we do a review of that contract. I find that contract unfortunate. I’ve called for details on it. I’ve called for a presentation, and I asked them, why do you need this software? It hasn’t led to a revenue increase. It hasn’t led to any revenue assurance. And yet this company is taking so much money.”
Hon. John Abdulai Jinapor Minister of Energy and Green Transition
Hon. Jinapor assured the public that the government is committed to addressing ECG’s financial and operational inefficiencies. He has received full backing from President Mahama to implement reforms.
Hon. Jinapor noted that ECG’s financial difficulties are not solely due to internal mismanagement but are also influenced by macroeconomic factors, including exchange rate fluctuations.
The revelations by Minister Hon. John Abdulai Jinapor expose deep-rooted financial and operational issues at ECG. His firm stance on accountability, procurement reforms, and contract reviews aims to restore efficiency and financial discipline within Ghana’s power sector. As investigations continue, the government is expected to take decisive action against those responsible for the mismanagement of public funds.
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