The recent allegations against the Electricity Company of Ghana (ECG) have raised serious concerns about the transparency and accountability of the company. Edward Abambire Bawa, a Member of the Mines and Energy Committee of Parliament, has accused ECG of being indiscipline and irresponsible in its financial and operational practices.
During a discussion on JoyNews' Newsfile, Mr. Bawa highlighted ECG's inability to account for the power it sells, as well as its lack of transparency with Independent Power Producers (IPPs) and state-owned power generation companies when it comes to revenue collection and payments. He emphasized that ECG's failure to provide transparent records and necessary documents for audits is a clear indication of indiscipline within the company.
Mr. Bawa also shed light on the cash waterfall mechanism (CWM) that ECG is forced to subject itself to due to its inability to account for the power it purchases and sells. He pointed out that ECG's substantial losses, estimated at 30-34%, pose a significant issue in the equitable distribution of revenues across the electricity value chain.
Furthermore, Mr. Bawa emphasized the role of the Public Utilities Regulatory Commission (PURC) in regulating the cash waterfall mechanism and ensuring transparency in revenue allocation. He stressed that ECG's lack of transparency has led to a lack of clarity for both IPPs and state power generation companies regarding the total amount of revenue collected and its distribution.
The recent controversy arose when ECG used funds accrued under the Cash Waterfall Mechanism to purchase fuel for power generation, leaving the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo) cashless and negatively impacting their operational capacity. The PURC has issued a one-week ultimatum to ECG to respond to a set of demands, warning of potential sanctions if the demands are not met.
In light of these developments, it is imperative for ECG to address the concerns raised by both Mr. Bawa and the PURC. Transparency, accountability, and responsible financial management are crucial in ensuring the stability and efficiency of Ghana's electricity sector. ECG must take proactive steps to rectify the issues highlighted and work collaboratively with regulatory bodies and stakeholders to uphold best practices in the industry.
The allegations against ECG serve as a reminder of the importance of transparency and accountability in public utilities and underscore the need for robust regulatory oversight to safeguard the interests of all stakeholders in the energy sector. It is incumbent upon ECG to demonstrate a commitment to addressing these concerns and upholding high standards of governance and operational integrity.
-source Myjoyonline | curated by Aisha Yakubu | Ghana Crimes
