Energy Minister Launches Probe into ECG’s Procurement Practices
The Minister for Energy and Green Transition, John Abdulai Jinapor, has established a special committee to investigate procurement activities undertaken by the Electricity Company of Ghana (ECG) under the Akufo-Addo administration.
Speaking on TV3’s Hot Issues on February 16, 2025, the minister expressed concerns over what he described as “frivolous procurements” by the state-owned power distributor. According to him, ECG’s questionable purchasing decisions have resulted in approximately 3,000 containers being held at Ghana’s ports, incurring an estimated GHS 1.5 billion in demurrage fees.
“This situation is highly unacceptable,” Jinapor stated. “Some of the procured items will last for ten years, while others may even expire in five years. We have, therefore, commissioned a committee to thoroughly investigate these procurements and the associated costs.”
Preliminary findings from the committee, according to the minister, suggest significant irregularities in ECG’s procurement processes. He indicated that former managers of the company failed to adhere to proper procurement procedures, leading to financial mismanagement.
“The early reports I have received indicate widespread mismanagement at ECG,” Jinapor added.
In response to these developments, the Energy Ministry is preparing to conduct a comprehensive audit of the sector. This will include a human resource audit alongside a broader technical and financial review to uncover inefficiencies and propose effective policy solutions.
“Beyond the financial audit conducted by PwC, we intend to carry out a deeper review of human resources and the entire energy sector. This will provide a clearer picture of inefficiencies and help shape our policy directives to address them,” Jinapor explained.
The committee’s findings are expected to guide future reforms aimed at ensuring transparency and efficiency within the power sector.
