ECG Scandal: 5 key findings of the Technical Committee report revealed

A detailed investigative report on the Electricity Company of Ghana’s (ECG) procurement practices has uncovered widespread irregularities, financial mismanagement, and blatant disregard for procurement laws.

The report, commissioned by the Ministry of Energy and Green Transition, highlights ECG’s excessive spending, failure to comply with the Public Procurement Act (Act 663 as amended), and questionable financial transactions linked to the clearance of thousands of containers at Tema Port.

Key findings of the report

1. Failure to follow procurement laws
   The committee found that ECG repeatedly ignored the Public Procurement Act (Act 663 as amended) by engaging in procurement practices without seeking approval from the appropriate regulatory bodies. Despite being denied an exemption from the Public Procurement Authority (PPA) in February 2023, ECG continued to procure items under its own “established commercial practices” without legal backing?.

2. Excessive use of non-competitive procurement methods
   A significant portion of ECG’s contracts were awarded through single-source procurement and requests for quotations (RFQs) rather than open and competitive tendering processes. In 2023 alone, 72.83% of contracts were awarded through single-source procurement, with only 3% passing through proper board approvals?.

3. Unapproved procurement manual
   The report further revealed that ECG operated under an unapproved procurement manual, which lacked an approving authority. This meant that ECG conducted multi-million-dollar procurements without regulatory oversight, leading to inflated contract values and potential financial losses?.

4. Exorbitant spending on equipment and services
   Between 2022 and 2024, ECG awarded contracts worth millions of dollars without competitive bidding.
   • In 2022, over $9 million was spent through price quotations alone.

   • In 2023, over $40 million was used to procure conductors and fuel stations.

   • In 2024, $7 million was spent on lineman safety belts, with another $5 million on computers, ladders, and vehicle spares?.

5. Financial losses from unpaid clearance fees at Tema Port
   The investigation also uncovered that ECG’s failure to pay clearance fees led to a backlog of over 2,500 containers at Tema Port. The company’s inability to properly account for these goods has resulted in revenue shortages and further financial strain?.

Read Also: Missing Containers: There has been a cartel operating at ECG – Energy Minister

The committee in its report recommended urgent reforms, including a complete overhaul of ECG’s procurement processes, stricter financial oversight, and legal action against those responsible for the breaches.

Read the full investigative report on Electricity Company of Ghana’s (E.C.G.) container holdup at Tema
Port and related procurement issues below:

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