Fidelity Bank runs from procurement abuses in ECG dealings

Fidelity Bank Ghana, has firmly denied allegations of procurement abuses in its dealings with the Electricity Company of Ghana (ECG), following a publication on October 24, by 14 Civil Society Organizations (CSOs).

In an official statement, the bank rejected claims of irregularities and reaffirmed its commitment to legal compliance and transparency.

Fidelity Bank, clarified that it has not been served any court summons, contrary to the CSOs’ assertion, and stated that it would respond to any legal proceedings as required by law.

The bank emphasized that it is one of 17 banks with which ECG conducts business, and dismissed allegations that it serves as ECG’s sole custodian of funds.

A recent report from the Public Utilities Regulatory Commission (PURC) indicated that ECG, holds 61 accounts across these 17 institutions, Fidelity noted.

The bank, also addressed concerns regarding potential conflicts of interest, noting that its relationship with ECG spans over 12 years, predating the appointment of any bank executive to ECG’s board.

Fidelity affirmed its adherence to the Companies Act 2019 and Bank of Ghana regulations, denying any breaches related to conflicts of interest or foreign exchange transactions.

According to Fidelity, it facilitated the purchase of USD10.75 million for ECG during the contested period, significantly less than the alleged USD40 million per month.

The bank underscored its role in supporting Ghana’s energy sector, detailing its financing of key projects such as the Kpone Thermal Power Plant and several independent power producer (IPP) initiatives, with a total investment exceeding USD700 million by 2014.

Fidelity also highlighted its involvement in the GHS 10 billion ESLA PLC Bond Programme since 2017.

Responding to the CSOs’ claims of procurement law violations, Fidelity denied any breaches of the Public Procurement Act in its dealings with ECG and urged the public to dismiss these allegations.

The bank reaffirmed its dedication to compliance and transparency, stating that it supports CSO efforts to protect the public interest but urged fair representation in such matters.

Fidelity assured the public of its commitment to uphold its integrity and vowed to counter any inaccurate claims made against the bank.

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