The Electricity Company of Ghana (ECG) is facing fierce criticism following revelations of GH¢189.2 million in budget overruns during a session with Parliament’s Public Accounts Committee (PAC).
The utility firm’s Chief Executive and senior management were questioned over what lawmakers described as “reckless and unapproved spending.”
According to details from the 2024 Auditor-General’s Report, Ranking Member Samuel Atta Mills accused ECG of exhibiting gross fiscal indiscipline and a blatant disregard for financial regulations. He cited multiple instances of inflated expenditures that far exceeded approved allocations.
“On staff fuel, ECG budgeted GH¢2.8 million but spent GH¢3.6 million,” the Komenda-Edina-Eguafo-Abrem (KEEA) MP quipped, sarcastically asking, “Did they drive around the world?” His concerns were backed by further alarming figures across several expense categories:
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Communication: budgeted GH¢4.2 million, spent GH¢7.9 million.
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Consultancy: budgeted GH¢40 million, spent GH¢58.6 million.
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Industrial relations: budgeted GH¢2 million, spent GH¢13 million.
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Stakeholder engagement: budgeted GH¢3.1 million, spent GH¢49 million.
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Publicity: budgeted GH¢5.7 million, spent GH¢21.8 million.
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Professional fees & subscriptions: budgeted GH¢731,000, spent GH¢1.5 million.
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Overseas travel: budgeted GH¢14 million, spent GH¢29.8 million.
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Call center operations: budgeted GH¢23.5 million, spent GH¢29.3 million.
Overall, ECG’s approved budget of GH¢144 million ballooned to GH¢333 million, nearly double the allocated amount.
Mr. Atta Mills described the financial excesses as “a clear case of financial indiscipline,” urging that Section 96 of the Public Financial Management Act (Act 921) be enforced. He insisted that the officers responsible face appropriate legal consequences.
“This level of recklessness cannot go unpunished,” he declared. “Those managers who were involved should face the Attorney-General for prosecution, it’s that simple.”
The revelations have intensified calls for accountability within ECG, particularly as the company continues to seek tariff increases despite widespread public frustration over unreliable service delivery and rising electricity bills.
