ECG Procurement Scandal: A Tale of Negligence and Mismanagement

A shocking investigation has uncovered a web of negligence, mismanagement, and procurement breaches at the Electricity Company of Ghana (ECG), resulting in staggering losses of over ₵909 million. The scandal, which has left many Ghanaians outraged, raises serious questions about the accountability and transparency of state-owned institutions.
At the heart of the scandal is the issue of abandoned containers at the Tema Port, which accumulated demurrage charges of over ₵909 million. The investigation revealed that ECG’s poor management, rather than lack of funds, was the primary cause of this avoidable expense ¹. The company’s procurement directorate, which was merged with the estates management unit in 2023, was found to have bought more items than needed, leading to a significant waste of resources.
The investigation also uncovered a culture of impunity and disregard for procurement laws within ECG. Contracts were awarded without proper approvals, and single-source contracts were misused without justification. The company’s failure to follow procurement laws and regulations has resulted in significant financial losses and undermines the integrity of the procurement process.
One of the most alarming aspects of the scandal is the deliberate holding up of containers at the port to justify awarding clearing contracts to private companies. This decision, which was made despite ECG having its own capable clearing unit, has resulted in additional costs of ₵159 million. The investigation also revealed that a company called Dawards Bond cleared 47 containers illegally and is now demanding ₵5.29 million from ECG, while avoiding paying taxes of nearly ₵4.8 million.
The ECG scandal has sparked widespread outrage and calls for accountability. Minister of Energy and Green Transition, John Abdulai Jinapor, has pledged to take immediate action and ensure that those responsible are held liable. The minister has also announced plans to decouple ECG’s procurement unit and introduce reforms to tighten procurement processes and enforce transparency.
As Ghanaians demand accountability and transparency from state-owned institutions, the ECG scandal serves as a stark reminder of the need for robust oversight and accountability mechanisms. The government must take decisive action to address the systemic failures that led to this scandal and ensure that those responsible are held accountable.
Key Findings of the Investigation:
– Negligence and Mismanagement: ECG’s poor management resulted in abandoned containers at the Tema Port, accumulating demurrage charges of over ₵909 million.
– Procurement Breaches: ECG failed to follow procurement laws and regulations, resulting in significant financial losses and undermining the integrity of the procurement process.
– Deliberate Holding Up of Containers: Containers were deliberately held up at the port to justify awarding clearing contracts to private companies, resulting in additional costs of ₵159 million.
– Tax Evasion: A company called Dawards Bond avoided paying taxes of nearly ₵4.8 million.
– Lack of Accountability: ECG’s failure to follow procurement laws and regulations has resulted in significant financial losses and undermines the integrity of the procurement process.
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