The Electricity Company of Ghana (ECG) is facing intense 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, appeared before the committee to answer questions over unapproved expenditures amounting to GH¢189.2 million, as captured in the 2024 Auditor-General’s Report.
The Ranking Member on the Committee, Samuel Atta Mills, strongly criticised the company’s financial management, describing it as a “display of fiscal indiscipline” and a blatant disregard for due process.
He noted that ECG’s spending in several key areas far exceeded approved budgets, calling the figures “alarming and unacceptable.”
Mr. Atta Mills cited several instances of excessive spending, revealing that while ECG budgeted GH¢2.8 million for staff fuel, the company spent GH¢3.6 million instead.
“On staff fuel, ECG budgeted GH¢2.8 million but spent GH¢3.6 million. Did they drive around the world?” he quipped.
He further highlighted other discrepancies, including communication costs that rose from GH¢4.2 million to GH¢7.9 million, consultancy services that increased from GH¢40 million to GH¢58.6 million, and industrial relations spending that surged from GH¢2 million to GH¢13 million.
Similarly, stakeholder engagement costs shot up from GH¢3.1 million to GH¢49 million, publicity costs climbed from GH¢5.7 million to GH¢21.8 million, professional fees and subscriptions increased from GH¢731,000 to GH¢1.5 million, while overseas travel expenses jumped from GH¢14 million to GH¢29.8 million.
Even call centre operations, budgeted at GH¢23.5 million, recorded GH¢29.3 million in actual spending.
Overall, ECG’s total approved budget of GH¢144 million ballooned to GH¢333 million — more than double its allocation.
Describing the situation as “financial recklessness,” Mr. Atta Mills urged the enforcement of sanctions under Section 96 of the Public Financial Management Act (Act 921) against those responsible.
“This level of recklessness cannot go unpunished. Those managers who were involved should face the Attorney-General for prosecution — it’s that simple,” he stated.
The revelations have reignited calls for greater accountability at ECG, especially as the company continues to push for higher electricity tariffs amid widespread public frustration over billing challenges and operational inefficiencies.
Source: Adomonline
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