By Ghana’s Energy Minister, John Abdulai Jinapor, has inaugurated a 5-member committee to investigate the Electricity Company of Ghana’s (ECG) procurement practices. This move aims to address inefficiencies and alleged malpractices that have led to significant financial losses, with over 2,500 containers stuck at the ports, incurring a cost of over GH¢1.5 billion.
The committee, chaired by Professor Innocent Senyo Akwasi, will investigate ECG’s general procurement practices, the cost of the containers, liabilities involved, and recommend solutions to stop mounting financial liabilities. They have been given a one-month deadline to submit their report.
Minister Jinapor emphasized the need for transparency and efficiency, stating that the ministry would take concrete steps to address the issues raised. He also assured that those found culpable would face the law.
“It’s all because they are engaged in what I call very frivolous procurements. Now, they have about 3000 containers stacked at the ports generating demurrage of about GHS 1.5 billion, that is very unacceptable. Some of the things they’ve procured will last them ten years, some will even expire in five years.
“So, we’ve commissioned a committee to investigate ECG’s procurements, and the cost of these containers stacked at the ports the committee is doing a very good job,” he said.
John Jinapor asserted that per the preliminary report received by the committee, former managers at ECG did not follow due procurement processes and guidelines
“So far, the preliminary reports I have gotten indicate that there’s massive rot at ECG,” he added.
Following these revelations, John Jinapor noted that in the coming days, the Ministry will conduct a human resource audit and a complete audit of the energy sector. This, he said will help the Energy Ministry to identify the inefficiencies in the sector and draft policies to deal with them.
“But beyond that there will be another technical report. What the PwC has done is a financial audit, we want to do a human resource audit, a deeper audit of all the energy sector which will then give us the clear picture as the inefficiencies so that we can tailor that in terms of our policy objective and policy directive to address this,” he stated.
