Auditor General Reveals, GH1.2bn Vanishes as ECG Fails to Pay Power Producers
By Prince Ahenkorah
The Electricity Company of Ghana (ECG) is once again under scrutiny following revelations in the 2024 Auditor-General’s Report that the state-owned utility overshot its approved expenditure by more than 130%, while simultaneously breaching multiple financial and procurement regulations.
According to the report, ECG spent GH¢333.96 million across thirteen budget lines more than double the GH¢144.75 million approved by its Board. The GH¢189.2 million overspend was not sanctioned by the company’s governing body, raising questions about internal controls and executive accountability.
The audit also uncovered that ECG withheld GH¢70.9 million in taxes from payments for goods and services in 2023 but failed to remit the funds to the Ghana Revenue Authority (GRA).
The Auditor-General has directed ECG to transfer the outstanding amount immediately and furnish proof of payment.
More troubling still are discrepancies in ECG’s revenue declarations under the Cash Waterfall Mechanism (CWM), the framework used to allocate funds among energy sector stakeholders.
While ECG declared GH¢8.64 billion in revenue, only GH¢7.35 billion was disbursed to Independent Power Producers (IPPs) and other State-Owned Enterprises (SOEs), leaving GH¢1.29 billion unaccounted for. The report recommends that ECG’s leadership be held personally liable for the shortfall.
The auditors also flagged a significant underreporting of revenue. ECG’s actual collections for 2023 stood at GH¢11.59 billion, yet the company reported only GH¢8.64 billion to the Energy Ministry and other oversight bodies. The GH¢2.95 billion discrepancy has prompted calls for the Chief Executive Officer and Finance Director to be held to account.
The report further exposes irregularities in ECG’s dealings with Hubtel Limited, a private firm contracted to manage digital payments. In 2022, ECG paid GH¢75 million to Hubtel without a signed contract on record. A subsequent five-year agreement, effective January 2023, was awarded through single-source procurement without approval from the Public Procurement Authority (PPA). The Auditor-General has recommended sanctions under Section 92 of the Public Procurement Act (Act 663).
Hubtel reportedly collected over GH¢10.34 billion in revenue on ECG’s behalf in 2023, deducting GH¢148.9 million in commissions before transferring the balance. Auditors have directed that all future collections be deposited in gross into ECG accounts to preserve transparency and audit trails.
In addition, ECG agreed to pay GH¢101.1 million in “legacy debt” to Hubtel for services rendered between November 2022 and December 2023. However, no documentation was provided to substantiate the figure. The report recommends disallowing the payment due to lack of justification.
The findings point to systemic governance failures at ECG and a disregard for statutory financial management protocols. The Auditor-General has called for sanctions under Section 96 of the Public Financial Management Act (Act 921) and urged ECG to overhaul its internal controls, enforce procurement compliance, and ensure accurate financial reporting.
With the energy sector already burdened by debt and inefficiencies, the revelations are likely to intensify calls for reform and greater executive accountability at ECG.