A recent audit conducted by PricewaterhouseCoopers (PwC) has uncovered that the Electricity Company of Ghana (ECG) made a secret payment of GHS 402.59 million in commissions to a third-party vendor responsible for managing its payment platform. This payment occurred prior to settling debts owed to power producers, raising significant concerns regarding ECG’s financial practices.
The report, which examines ECG’s finances from January to December 2024, indicates that these commissions were disbursed outside the Cash Waterfall Mechanism (CWM)—a framework intended to ensure equitable distribution of funds within Ghana’s power sector. The audit reveals that the commissions were nearly equivalent to the GHS 411.67 million ECG paid to the Volta River Authority (VRA) and exceeded the GHS 322.79 million allocated to Bui Power Authority (BPA). This suggests that the vendor managing ECG’s payment platform received funds before the actual electricity producers.
Additionally, the PwC report highlights that the CWM Guidelines do not permit such commissions to be deducted prior to revenue declaration, raising questions about ECG’s transparency and decision-making processes. The payments escalated over the year, starting at GHS 17.9 million in January and reaching a peak of GHS 42.1 million in November 2024.
Further findings indicate that ECG under-reported its total revenue by GHS 5.33 billion in 2024, exacerbating the financial challenges facing the power sector. The audit cautions that these actions could have detrimental effects on power producers and other stakeholders. PwC advises ECG to engage with the relevant authorities regarding this matter.
As Ghanaians continue to grapple with power supply challenges, these revelations are likely to intensify demands for accountability and reforms within ECG and the broader energy sector.
Content by : Richard Sena Quashie
