An audit conducted by PricewaterhouseCoopers on the Cash Waterfall Mechanism (CWM), a system designed for the distribution of electricity revenue payments, has uncovered significant inconsistencies between reported collections and actual disbursements by the Electricity Company of Ghana (ECG).
The CWM, was established to uphold transparency and prompt payments across the electricity value chain.
However, auditors found discrepancies between the declared collections and the corresponding allocations made by ECG, which consistently differed from the actual payments.
This misalignment undermines the core objectives of the CWM, which aims to guarantee predictability and equity in payments. Furthermore, it was noted that certain payments were made from accounts not designated as part of the single collections account, a violation of a directive issued by the Ministry of Finance.
Moreover, disbursements to non-CWM beneficiaries surpassed the allocated amount set by ECG. To fortify the CWM, auditors have recommended enhancements in billing, invoicing, and disbursement procedures, as well as improved management of non-tariff revenue by ECG. They also suggest transitioning the CWM to a technology-driven platform and implementing robust cybersecurity measures.
Moving forward, efforts will focus on retrieving missing data and engaging stakeholders in discussions to ensure a more transparent and efficient CWM system.
ECG, Bright Simons and Fidelity Bank Ghana, have been embroiled in a controversy surrounding alleged “sweetheart” foreign exchange deals between Fidelity Bank Ghana Ltd (Fidelity Bank) and the ECG. All the parties have remained steadfast in their positions, with threats of legal action.
ECG Managing Director, Samuel Dubik Masubir Mahama, had been unwilling to justify an exchange rate numbers he supplied to the Cash Waterfall Mechanism Committee of the Public Utilities Regulatory Commission (PURC).
ECG, meant to be the lifeblood of the nation’s stability and progress, has morphed into an albatross, a symbol of inefficiency and alleged corruption strangling the country’s development.
The result is that, whilst the citizens have been left grappling with an unreliable power supply, managers are reaping undeserved fortunes living in plush houses and driving luxurious cars like Arabian princes from an oil-rich country.
The rot began in 2019 with the PDS scandal, a failed attempt to privatize ECG amid allegations of undue influence from President
Far from resolving the issue, the aftermath saw familiar faces allegedly implicated in the scandal back in control, this time with direct influence.
The result: a company haemorrhaging funds, with accusations swirling that the benefits are not reaching the people, but are funnelled to a select few with ties to the presidency.
Ghana’s Ministry of Finance, in a desperate bid to keep the lights on, is reportedly pumping a staggering GH¢300 million into the power sector every month.
This lifeline, intended to illuminate homes and businesses, seems to be illuminating something far more sinister – the alleged abuse of power by the very people entrusted with the nation’s electricity.
The ACEP boss, Benjamin Boakye, a respected Energy Expert, last Saturday, March 2, 2024, exposed a scheme that drips with suspicion on Joy FM’s Newsfile and X formerly Twitter.
ECG, it appears, to be buying dollars at a grotesquely inflated rate of GH₵13.95, when the market rate at the time hovered around GH₵11.5.
This deliberate manipulation of exchange rates translates to a staggering GH₵80 million loss for ECG every month!
Mr Boakye on X, had tagged the Bank of Ghana, saying its “Exchange rate in October 2023 was less than GHS 11.5 to the $ and commercial Banks ~GHS12. (But) ECG was buying the $ @GHS13.95, creating exchange losses above GHS 80 million in one month for buying $43m. We will trend exchange losses for a year and report”.
The Herald has confirmed from insiders at the presidency and industry people familiar with the situation that this has become a regular practice identified by the Cash Waterfall Mechanism (CWM) Committee of the Public Utilities Regulatory Commission (PURC). Until recently, the CWM was under the Office of the Vice President.
Even more galling, the black market rate at the time was significantly lower than the one ECG was allegedly paying.
This raises a burning question: who, in their right mind, would approve such a deal, especially when using public funds?
The answer, Ghanaians on social media are fuming, points directly to the leadership of ECG and the indirect beneficiaries- the President and his family. Calls for accountability have reached a fever pitch, with accusations of “deliberate siphoning” of public resources echoing across the nation.
But amidst the public outcry, the key players – Ken Ofori-Atta, the Finance Minister, and the ECG boss, Dubik Mahama – seem unfazed.
Mahama’s position, some allege, is a direct consequence of the failed PDS deal, a way for the President and his family to maintain control over ECG through a proxy.
The situation is dire. Ghanaians are not just struggling with unreliable power, but with the gnawing suspicion that their own government is the source of the darkness. This is not just an economic crisis, but a crisis of trust.
Will President Akufo-Addo address these allegations and bring transparency to the ECG saga? Or will Ghana continue to stumble in the dark, its path illuminated only by the anger of its citizens? Only time will tell, but one thing is certain: Ghanaians are demanding answers, and the lights need to be turned on – not just on the nation, but on those allegedly manipulating the system for personal gain.
