Pressure is mounting on Energy Minister, John Abdulai Jinapor, to remove the Managing Director of the Electricity Company of Ghana (ECG), David Asamoah. However, the Ministry appears uncertain about who should succeed him.
Information available to The Herald, indicates that many individuals are lobbying for the position, creating a dilemma for President John Mahama, regarding the selection of a suitable candidate.
This is occurring against the backdrop of allegations of mismanagement and the inexplicable use of funds amounting to hundreds of millions of Ghana cedis, as highlighted in a recent audit report by renowned auditing firm PricewaterhouseCoopers (PwC).
Notably, some of the individuals vying for the role, have previously been implicated in the failed Power Distribution Services (PDS) deal.
The PDS consortium, led by Philippine electricity company Meralco, resulted in Ghana losing US$190 million in grants from the United States under the “Power Africa” initiative.
Analysts argue that David Asamoah, is currently only acting as Managing Director and is expected to revert to his previous role as a director within the company.
He assumed the acting position, following the removal of Samuel Dubik Mahama, whose departure was officially described as a resignation by the Akufo-Addo government.
The call for a substantive Managing Director for ECG, comes as the Minister of Energy inaugurates a seven-member committee tasked with exploring private sector participation in the company.
This initiative follows President Mahama’s directive to address the persistent mismanagement issues plaguing the utility company.
The initiative signals a shift toward improving ECG’s performance, which has been plagued by inefficiencies, losses, and financial instability.
ECG, has been grappling with years of mismanagement, with poor procurement practices and under-recoveries contributing to a massive financial deficit. The utility company, which plays a vital role in Ghana’s electricity supply, is currently dependent on over two billion dollars from the national budget.
This dependency has raised concerns about its sustainability and the broader impact on the country’s economic health. The committee’s mandate to explore private sector involvement in ECG’s operations is viewed as a necessary step in addressing these financial and operational challenges.
While the move is commendable, it is critical that the committee’s focus extends beyond the future of the company. The actions of previous executives must not be overlooked. The shady dealings and poor management that have brought ECG to its knees must be addressed.
There is growing concern that those responsible for the company’s downfall are walking free, without facing any consequences for their actions. The Herald believes that the committee should not only work to ensure a more efficient and profitable future for ECG, but also advocate for accountability for past misdeeds.
Holding past executives accountable will send a strong message to public servants, signalling that decisions made at the expense of national interest will not be tolerated. Public office is a position of trust, and the actions of those who have exploited that trust should not be allowed to go unpunished.
It is essential that the committee takes a holistic approach, acknowledging both the root causes of ECG’s current challenges and the individuals whose past decisions have directly contributed to its financial crisis.
The Herald expects concrete actions, not only to reform ECG’s structure but also to ensure justice for the wrongdoing of the past. Without accountability, efforts to restructure and revive ECG risk being undermined, and the public’s trust in the system will remain shaken. As the committee sets to work, the nation will be watching closely to see whether it can deliver on the promise of real change—change that benefits the country and not just a few individuals at the top.
Again, while the creation of this committee is a step in the right direction, it must be followed by strong, decisive action that encompasses both the future of ECG and the past mismanagement that led it to this point. Only then can we hope to see meaningful reform in the utility sector and a commitment to protecting the national interest.
The PwC audit report, which examined ECG’s books for the 3rd quarter of 2024, revealed significant inconsistencies in the total revenue collected by the company.
For example, the audit report highlighted a substantial variance between the collection amounts recorded in the cash waterfall mechanism (CWM) – a system designed to ensure the equitable distribution of revenues collected by the company – and the ECG Cash Settlement Platform Report.
It was discovered that the total revenue generated for the 3rd quarter in the CWM was approximately GH¢600 million less than the amount reported on the company’s platform report.
“We found that the collection amounts in the CWM were lower than those in the ECG Cash Settlement Platform Report. The CWM recorded an amount of GH¢2.72 billion, while the ECG Cash Settlement Platform Report for the Task 1 period showed GH¢3.29 billion.
“In summary, the discrepancies between the CWM and the amounts in the ECG Cash Settlement Platform Report are as follows:
• October 2023: GH¢404,816,039
• November 2023: GH¢104,768,729
• December 2023: GH¢57,948,229,” excerpts from the report revealed.
The PwC report also highlighted differences between the collection amounts in the CWM and ECG’s Revenue Collections Sheet.
“For the three-month period from October to December 2023, the total revenue collections in the CWM amounted to GH¢2.72 billion, whereas the monthly revenue collections reported in the ECG Revenue Collections Sheet for the same period totalled GH¢3.33 billion.
“Significantly, there were discrepancies in both the total collection amounts and the reconciliations between tariff and non-tariff collections,” it added.
Additionally, the report found that the total revenue in the CWM was GH¢1.14 billion less than the total amount of money in the company’s bank statements.
It also revealed that ECG maintained 84 bank accounts with 20 different banks, despite a directive to consolidate all revenue collections and disbursements into a single account.
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