The Public Accounts Committee (PAC) has recommended prosecution for managers of the Electricity Company of Ghana (ECG) following unauthorized expenditure totaling GH₵189.2 million.
The committee’s review of ECG’s 2024 financial records by the Auditor General revealed that although the approved budget was GH₵144 million, the company spent GH₵333 million, exceeding the limit by over GH₵189 million.
Ranking member of the PAC, Samuel Atta Mills, expressed shock at the extent of spending beyond approved allocations during the committee’s recent session.
“So, budget approval was 144 million, you spent 333 million. That’s excess of 189.2 million,” he stated.
He highlighted multiple areas where expenses far exceeded the budget without board approval.
Among the examples cited, cleaning expenses ballooned from an approved GH₵2.8 million to GH₵10.4 million.
This, expense left the ranking rhetorically asking, “how many suits did you clean for that?”
Honorarium payments increased from GH₵3.8 million to GH₵4.6 million, and hotel expenses rose from GH₵9.3 million to GH₵12.2 million.
Fuel costs also showed an overshoot, with staff fuel spending rising from GH₵2.8 million to GH₵3.6 million.
Mr. Atta Mills asked, “Staff fuel, eii, did they drive around the world?”
Communication expenses nearly doubled the budget, reaching GH₵7.9 million against the approved GH₵4.2 million.
Consultancy fees were particularly high, with spending hitting GH₵58.6 million compared to the approved GH₵40 million.
Mr. Atta Mills noted, “All these, you did it on your own without even board approval.”
Industrial relations expenses surged from GH₵2 million to GH₵13 million, while stakeholder engagement costs escalated dramatically from GH₵3.1 million to GH₵49 million.
This prompted the ranking member to question the legitimacy of ECG’s proposed tariff increase, stating, “And you want to increase our tariffs?”
Additional overruns included publicity costs at GH₵21.8 million versus a GH₵5.7 million budget, professional fees doubling to GH₵1.5 million from GH₵731,000, and overseas travel expenses more than doubling from GH₵14 million to GH₵29.8 million.
Call centre expenses also exceeded the approved budget, rising to GH₵29.3 million from GH₵23.5 million.
Mr. Atta Mills criticized the management for financial indiscipline, urging that the recommendations by the Auditor General that relevant sanctions under Section 96 of the Public Financial Management Act, 2016 (Act 921), be applied.
He recommended that the managers responsible should face prosecution by the Attorney General.
“CEO, those managers who were involved, I’m recommending that they need to face the Attorney General for prosecution. It’s just simple and short. You spend all this, and you want to come and increase our tariffs. You and your team. Yooo yate, to wit, “we hear.”
PAC Chairperson Abena Osei Asare also voiced concerns over the apparent disregard for fiscal discipline within ECG’s management.
The Auditor General further urged ECG to strengthen internal controls and rigorously monitor expenditures going forward to prevent similar breaches.
Source: www.Kumasimail/Kwadwo Owusu
