Auditor-General's report exposes $145m meter procurement breach by ECG

A report by the Auditor-General (A-G) has revealed that the Electricity Company of Ghana (ECG) exceeded $145 million in the procurement of meters, violating the Public Procurement Act.

The report also highlighted that ECG was unable to fully recover the excess of GH¢53.9 million identified through monitoring and did not take legal action against customers involved in electricity theft, which could have served as a deterrent to others.

The audit, conducted from August to December 2022, 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 their accessories, amounting to USD 145,010,153.92 over the audit period without adhering to the requirements of the Public Procurement Act."

"During our audit period, ECG was unable to recover all the GH¢53,988,463.31 that it detected through monitoring and failed to prosecute customers 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, Johnson Akuamoah Asiedu, recommended that ECG ensure all procurement activities comply with the Public Procurement Act to guarantee value for money.

GA/OGB