We categorically reject GH¢5.8m fine imposed on ECG board members – Lawyers to PURC

Lawyers representing the governing Board Members of the Electricity Company of Ghana (ECG) are contesting a GH¢5.8 million fine imposed by the Public Utilities Regulatory Commission (PURC).

The regulatory body imposed the said fine on them for violating Regulation 39 of L.I. 2413, which requires prior communication to consumers before any major power outages take place.

But lawyers representing the ECG board contend that the PURC acted unlawfully and without proper authority, therefore categorically reject the fine imposed and its implications.

They further argue that ECG board members do not directly partake in the day-to-day operations of the power distribution company hence they cannot be held responsible for the actions taken amidst the consistent power outages.

They pointed out that under the Public Utilities Regulatory Commission Act, only principal officers can be held personally liable for breaches under the Act.

Read portions of a statement from lawyers representing ECG board members as quoted by citinewsroom.com below:

“It is patently clear that under the said provision, the Commission can only impose a regulatory charge on a public utility. The Commission does not have the power/authority to purport to impose any regulatory charge on officers of the public utility. The Commission in purporting to impose the said regulatory charges on the Board Members of ECG clearly exceeded their jurisdiction as it is not within their powers/authority to do so.

“It must also be stated that the Electricity Company of Ghana Limited as a corporate body has a legal personality that is distinct from its Board Members. This is the very foundation of Company Law. The officers of the company cannot be held liable for the acts of the company.

“Lifting the veil of incorporation to go after the officers of the company can only be done in exceptional cases and can only done by a court of competent jurisdiction. The Commission’s lack of jurisdiction, power and/or authority to lift the veil of incorporation in the instant matter to purport to impose regulatory charges personally on the Board Members of ECG is strengthened by the provisions of Sections 38 & 42 of The Public Utilities Regulatory Commission Act, Act 538,1997,”

“The Commission’s basis for holding the Board Members personally liable is because “These Board Members were at all material times responsible for providing strategic direction to ensure the provision of safe, adequate, efficient, reasonable and non-discriminatory service to consumers”

“As stated above, under Section 38 of Act 538 a default on the part of a public utility in the payment of a penalty may lead to the personal liability of a principal officer of the public utility. Under Section 49 of Act 538 a principal officer means the person responsible for the day-to-day administration of the affairs of the public utility,”

“Board members of ECG are not responsible for the day-to-day administration of ECG and, therefore, are not principal officers within the intendment of Act 538 to be able to be held liable for a default on the part of the public utility ECG.

“The Commission’s Order imposing regulatory charges on the members of the Boards is unlawful, null and void as same is without jurisdiction. By this Order, the Commission has unlawfully clothed itself with the powers of the High Court, and imposed a sentence on the Board Members, without having been given the opportunity to be heard which amounts to a breach of the rules of natural justice. Our clients, therefore, reject the contents of the regulatory order relative to any personal liability on their part,”

MA/SA