The Public Accounts Committee (PAC) has proposed legal action against managers of the Electricity Company of Ghana (ECG) due to unauthorized spending amounting to GH₵189.2 million.
Assessment of ECG’s 2024 financial statements conducted by the Auditor General revealed that while the sanctioned budget was GHs144 million, the company incurred expenditures of GHs333 million, surpassing the budgetary limit by more than GH₵189 million.
Samuel Atta Mills, the ranking member of PAC, expressed surprise regarding the significant overspending beyond approved allocations during the committee’s recent session.
Budget approval amounted to 144 million; expenditures totaled 333 million. He stated that the total exceeds 189.2 million.
He identified several instances in which expenditures significantly surpassed the budget without obtaining board approval.
Sanitation expenses increased significantly from an approved GH₵2.8 million to GH₵10.4 million.
This expense prompted a rhetorical inquiry: “How many suits did you clean for that?”
Honorarium payments rose from GH₵3.8 million to GH₵4.6 million, while hotel expenses increased from GH₵9.3 million to GH₵12.2 million.
Fuel expnses increased miraculously, with staff fuel spending escalating from GH₵2.8 million to GH₵3.6 million.
Communication expenses significantly exceeded the budget, totaling GH₵7.9 million compared to the approved GH₵4.2 million.
Consultancy fees exceeded expectations, totaling GH₵58.6 million, in contrast to the approved budget of GH₵40 million.
Mr. Atta Mills remarked, “You accomplished all of this independently, without obtaining board approval.”
This prompted the ranking member to question the validity of ECG’s suggested tariff hike, stating, “And you wish to raise our tariffs?”
Further expenditures included publicity costs totaling GH₵21.8 million, surpassing the allocated budget of GH₵5.7 million; professional fees escalated to GH₵1.5 million from GH₵731,000; and international travel expenses increased from GH₵14 million to GH₵29.8 million.
The expenditures associated with the call centre exceeded the sanctioned budget, rising from GH₵23.5 million to GH₵29.3 million.
Mr. Atta Mills expressed disapproval of the management’s financial practices and advocated for the implementation of the Auditor General’s recommendations concerning appropriate sanctions as outlined in Section 96 of the Public Financial Management Act, 2016 (Act 921).
He called for the prosecution of the managers with immediate effect.
Further, the PAC Chairperson, Abena Osei Asare, expressed worry with regards to the noticeable lack of fiscal discipline in the management of ECG.
