Fidelity Bank has been caught playing smart and almost shielding the management of the Electricity Company of Ghana (ECG) in the inflated exchange rate scandal obviously to keep its business dealings with the state power producer.
A statement on the letterhead of the bank on Monday, 4 March 2024, went viral describing as false a “Bright Simons’ publication on X where he alleged that ECG was “dishing out” 80 Million Ghana Cedis for free to Fidelity Bank in “Sweetheart” Exchange rate deals”.
Interestingly the statement admitted that “Fidelity Bank Ghana Limited did source for foreign exchange on behalf of ECG in 2023 and the sources of the funds were from both Bank of Ghana and the open market” but failed to quote the exact amount at which it sold the dollars to EGC.
The state power company had in a report to the Cash Waterfall Mechanism (CWM) Committee of the Public Utilities Regulatory Commission (PURC) previously under the Office of the Vice President said it bought dollars as of last October at GH₵13.95 although the market rate at the time according to Bank of Ghana, hovered around GH₵11.5.
On Saturday, 2nd March 2024, Mr Simons took to X saying “ECG, Ghana’s govt-controlled electricity utility, needs to explain, & URGENTLY, why it is “dishing out” ~80 million GHS for free to Fidelity Bank in sweetheart exchange rate deals. Unless ECG knows something about the “true value” of the Cedi that the rest of the market don’t”.
But in an undated statement titled “CUSTOMER STATEMENT – Alleged ‘Sweetheart’ FX dealings between ECG and Fidelity Bank”, the bank said “We categorically state that this information is false and misleading” and attempted an explanation.
“Funds sourced from the Bank of Ghana by Fidelity Bank on behalf of ECG were sold to ECG at the same rate it was sourced, as per the Bank of Ghana requirements”, it said.
“We have all records of transactions with ECG and would like to emphasize that no foreign exchange has ever been sold to ECG above the market rates and in some instances, they were sold significantly below the market rate” adding “All records are also available at the Central Bank and can be verified”.
“We, as a bank, are dedicated to providing high-quality products/services and maintaining strong relationships with all stakeholders and we encourage our customers to continue believing with us”, the statement concluded.
But hours after Fidelity Bank denied inflating the price at which it sold the dollars to ECG, Bright Simons went back to X with questions.
He wrote “Fidelity Bank of Ghana says that it sold all the dollars it bought from Bank of Ghana & the “open market” to ECG at the SAME RATE they were sourced. And that sometimes they sold BELOW MARKET RATE. The issue is simple: WHAT WAS THIS RATE? Was it at the 13.95 ECG reported or not?
Interestingly, there was another post from him which said “This ECG-Fidelity exchange rate matter should not be left at “he said, she said”. We are talking about potential losses exceeding one Billion Ghana Cedis ($100 million). This is not a small matter that can just be brushed aside with one dismissive press release”.
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 where he alleged ECG, 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 GHS11.5 to the $ and commercial Banks ~GHS12. (But) ECG was buying the $ @GHS13.95, creating exchange losses above GHS80 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.
Even more galling, the black market rate at the time was significantly lower than the one ECG was allegedly paying raising 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, pointing 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 Managing Director of ECG, 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 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.
Meanwhile, reports suggest PricewaterhouseCoopers (PwC) Ghana an Audit & Assurance, Advisory and Tax services to the company tasked by the government of Ghana to check if the under-pressure state electricity utility, ECG, is handling its finances properly, has since last year been struggling to get data from ECG.
