ECG’s $145m meter procurement breached Public Procurement Act – AG Report

The Auditor-General’s (A-G) report has revealed that the Electricity Company of Ghana’s (ECG) procurement of meters, exceeding $145 million, violated the Public Procurement Act.

The report also highlighted that ECG failed to recover an excess of GH₵53.9 million identified through monitoring and did not pursue legal action against customers involved in electricity theft, missing an opportunity to deter similar offenses.

The audit, conducted from August to December 2022, covered 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 its accessories amounting to USD 145,010,153.92 over the audit period without adhering to the requirement of the Public Procurement Act,” the report stated.

“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 who were engaged in power theft to serve as a deterrent to others,” the report added.

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.

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