ECG’s $145m meter procurement breached Public Procurement Act – AG Report

The
Auditor-General’s
(A-G)
report
has
uncovered
that
the
Electricity
Company
of
Ghana’s
(ECG)
procurement
of
meters,
which
exceeded
$145
million,
violated
the
Public
Procurement
Act.

The
report
also
revealed
that
ECG
was
unable
to
fully
recover
the
excess
of
GH53.9
million
identified
through
monitoring
and
did
not
take
legal
action
against
customers
involved
in
electricity
theft,
which
could
have
served
as
a
warning
to
others.

The
audit
spanned
from
August
to
December
2022
and
examined
the
period
from
2016
to
2021
at
various
ECG
locations,
including
the
headquarters,
Metering
and
Technical
Services
(MTS)
Division,
the
Materials
and
Depot
in
the
Greater
Accra
Region,
as
well
as
four
selected
Regional
and
nine
district
offices.

“ECG
signed
50
contracts
to
procure
862,750
meters
and
its
accessories
amounting
to
USD145,010,153.92
over
the
audit
period
without
adhering
to
the
requirement
of
the
Public
Procurement
Act.”

“During
our
audit
period,
ECH
was
unable
to
recover
all
the
GHC
53,988,463.31
that
it
detected
through
monitoring,
and
failed
to
prosecute
customers
who
were
engaged
in
power
theft
to
serve
as
a
deterrent
to
others,”
the
report
stated.

In
a
letter
sent
to
the
speaker
on
June
2,
2023,
the
A-G,
Johson
Akuamoah
Asiedu,
recommended
that
the
ECG
should
ensure
all
procurement
activities
comply
with
the
Public
Procurement
Act
to
guarantee
value
for
money.




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