A shocking revelation has emerged in Ghana’s energy sector, as Energy Minister John Jinapor exposed a significant fraud involving the Electricity Company of Ghana (ECG). The scandal, amounting to $500,000, involves the improper auctioning of critical equipment meant for ECG.
According to Jinapor, ECG’s failure to clear essential equipment from the port on time led to financial losses. A specific case cited by the minister involved a container valued at $500,000, which was auctioned off for a mere GHC100,000 and then resold to ECG for $300,000.
Jinapor described the situation as “unacceptable” and vowed to take decisive action against such practices. “It will stop. And I mean it will stop. Whatever it takes to stop that, no matter how unpopular that may be, we must take action,” he emphasized.
The revelations have sparked public outrage, with calls for an investigation into ECG’s procurement and auctioning processes. Stakeholders are urging the government to implement stricter measures to prevent financial mismanagement.
In addition to the auction fraud, Jinapor noted that ECG currently has around 3,000 containers stuck at ports, accumulating GHS 1.5 billion in demurrage costs due to delays in clearance. He attributed this issue to “frivolous procurements” and stated that some of the procured items will last for ten years, while others will expire in five years.
To tackle these issues, Jinapor has established a committee to investigate ECG’s procurement practices and assess the financial losses incurred due to mismanagement. Initial findings suggest that previous management at ECG did not adhere to proper procurement processes, with Jinapor describing the situation as “massive rot” within the organization.
Ruth Abla ADJORLOLO
