The Electricity Company of Ghana (ECG) is facing scrutiny for operating 84 bank accounts across 20 different banks, despite being instructed to manage a single account for all revenue collections and disbursements. This directive was part of the International Monetary Fund’s (IMF) conditionalities for Ghana’s current IMF-supported program.
An audit conducted by PricewaterhouseCoopers (PwC) revealed that ECG’s financial management practices are in violation of this key guideline. The audit noted that ECG’s scattered approach to banking is inconsistent with the directive to centralize all financial activities under a single collection account.
To address this issue, PwC suggested that ECG consider consolidating its operations by selecting a bank with more extensive branches nationwide. This would minimize the need for multiple accounts across several banks, streamline operations, and improve financial transparency.
The audit also highlighted concerns regarding ECG’s payment practices. Despite being obligated to make payments by the 22nd of each month, ECG allegedly failed to make timely payments to Independent Power Producers (IPPs) and regulatory bodies. This breach of contractual obligations could lead to further financial constraints for the state-owned entity.
The PwC audit report emphasized that untimely payments have caused delays and disruptions in the energy sector, undermining the smooth operation of Ghana’s power distribution system.
Ruth Abla ADJORLOLO