An Auditor-General (A-G) report has disclosed that the Electricity Company of Ghana (ECG) overspent by more than $145 million on meter procurement, in violation of the Public Procurement Act.
The report also highlighted ECG’s failure to fully recover an excess of GH¢53.9 million identified through monitoring, and its neglect to pursue legal action against customers involved in electricity theft, which could have deterred similar offenses.
Conducted from August to December 2022, the audit covered the period from 2016 to 2021 across multiple ECG sites including headquarters, Metering and Technical Services (MTS) Division, Materials and Depot in Greater Accra, as well as selected regional and district offices.
“ECG signed 50 contracts to procure 862,750 meters and their accessories, amounting to USD 145,010,153.92 over the audit period without adhering to the requirements of the Public Procurement Act.”
“During our audit period, ECG was unable to recover all the GH¢53,988,463.31 that it detected through monitoring and failed to prosecute customers engaged in power theft to serve as a deterrent to others,” the report stated.
In a letter dated June 2, 2023, addressed to the Speaker, A-G Johnson Akuamoah Asiedu recommended that ECG ensure all procurement activities comply with the Public Procurement Act to ensure optimal value for money.