IEPR petitions Special Prosecutor over ECG meter procurement breaches

The Institute for Energy Policy and Research (IEPR) has petitioned the Office of the Special Prosecutor to investigate alleged procurement breaches by the Electricity Company of Ghana (ECG).

The Auditor-General in its recent report also cited the breaches.

Speaking on Energy 101 on Asaase Radio on Monday (23 August), the Executive Director for IEPR, Kwadwo Poku, said there is enough evidence for people to be held liable.

“I am saying this on your show for the first time, today (23 August) that the Institute for Energy Policy and Research has petitioned the Special Prosecutor on this matter to investigate and prosecute,” Poku said.

He added: “There is enough document and information available. This meter escrow account was opened at the erstwhile Capital Bank. And actually, apart from the 12 million upfront payment given to L&R Investment and Trading Company, they were also given a 24 million Letter of Credit, all of these payment were done between 14 and 30 December 2016,” Poku said.

Background

The latest Auditor-General’s report revealed that management of ECG procured prepayment meters and 265sq meters of conductors amounting to GHC59,161,964.56 between 2014 and 2016. Those items were not issued till the time of their inspection on August 8, 2019.

 The Auditor-General’s report also disclosed that electrical materials amounting to GHC11,581,019.21 were given out on loan to eight beneficiary Companies.

 Those materials were issued out between 2014 and 2018 without any specific terms of the agreement.

 It advised Management to pursue the returns of those electrical supplies or the parties concerned should be made to pay for the cost of the materials as considered appropriate before the materials become obsolete.

 “We noted during our audit that 17 transformers were damaged within 2010 and 2013 but they are unable to ascertain the basis upon which the transformers with an average useful life of 35 years can be damaged without use,” it added.

The report recommended to ECG’s Management to safeguard assets procured and ensure that the faulty transformers were repaired or the Procurement Officers and Operations Directorate should be held responsible for the damage to the equipment.

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