The Electricity Company of Ghana (ECG) is under intense scrutiny after a Public Accounts Committee (PAC) sitting in Parliament revealed massive budget overruns.
Executives from ECG, led by the Chief Executive, appeared before the committee to explain unapproved expenditures totalling GH¢189.2 million, as detailed in the 2024 Auditor-General’s Report.
Samuel Atta Mills, the Ranking Member on the Committee, condemned the company’s financial management as a “display of fiscal indiscipline” and blatant disregard for due process. He called the overspending in key areas “alarming and unacceptable.”
Examples of the excess spending include:
Staff fuel: budgeted GH¢2.8 million but spent GH¢3.6 million
Communication costs: rose from GH¢4.2 million to GH¢7.9 million
Consultancy services: increased from GH¢40 million to GH¢58.6 million
Industrial relations: surged from GH¢2 million to GH¢13 million
Stakeholder engagement: jumped from GH¢3.1 million to GH¢49 million
Publicity costs: climbed from GH¢5.7 million to GH¢21.8 million
Professional fees and subscriptions: rose from GH¢731,000 to GH¢1.5 million
Overseas travel: increased from GH¢14 million to GH¢29.8 million
Call centre operations: budgeted GH¢23.5 million but recorded spending of GH¢29.3 million
The total approved budget was GH¢144 million, but actual spending ballooned to GH¢333 million—more than double the allocation.
Describing the situation as “financial recklessness,” Mr. Atta Mills called for sanctions under Section 96 of the Public Financial Management Act (Act 921). He said, “This level of recklessness can not go unpunished. Those involved should face prosecution by the Attorney-General—it’s that simple.”
The revelations have renewed demands for greater accountability as ECG pushes for higher electricity tariffs amid ongoing public frustration over billing problems and operational inefficiencies.
Story by: Mercy Addai Turkson #ahotoronline.com