Ghana’s state-owned Electricity Company of Ghana (ECG) is under fire after lawmakers uncovered nearly GH¢189 million ($15 million) in spending beyond its approved budget, sparking accusations of fiscal recklessness and calls for prosecution of top executives.
During a heated session of Parliament’s Public Accounts Committee (PAC) this week, the utility’s leadership was grilled over findings in the 2024 Auditor-General’s Report that revealed widespread budget overruns across multiple spending categories.
ECG had an approved expenditure ceiling of GH¢144 million, but actual spending soared to GH¢333 million, according to the report. The committee’s ranking member, Samuel Atta Mills, excoriated company officials for what he described as “blatant financial indiscipline and disregard for due process.”
“On staff fuel, ECG budgeted GH¢2.8 million but spent GH¢3.6 million,” Atta Mills said. “Did they drive around the world?”
The report cited sharp overruns across several categories, including:
Communication expenses: GH¢4.2 million budgeted, GH¢7.9 million spent
Consultancy: GH¢40 million budgeted, GH¢58.6 million spent
Industrial relations: GH¢2 million budgeted, GH¢13 million spent
Stakeholder expenses: GH¢3.1 million budgeted, GH¢49 million spent
Publicity: GH¢5.7 million budgeted, GH¢21.8 million spent
Professional fees and subscriptions: GH¢731,000 budgeted, GH¢1.5 million spent
Overseas travel: GH¢14 million budgeted, GH¢29.8 million spent
Call center operations: GH¢23.5 million budgeted, GH¢29.3 million spent
Mr. Atta Mills urged the committee to recommend sanctions under Section 96 of Ghana’s Public Financial Management Act (Act 921), which allows for prosecution of officials responsible for unauthorized expenditures. “This level of recklessness cannot go unpunished,” he said. “Those managers who were involved should face the Attorney-General for prosecution — it’s that simple.”
The revelations have intensified scrutiny of ECG’s management at a time when the utility is seeking further tariff hikes, arguing that revenue shortfalls are hampering its operations. Public frustration has grown over persistent billing issues and service inefficiencies, amplifying pressure on the government to enforce stricter oversight of the power distributor.
Officials from ECG have yet to issue a detailed response to the allegations, though the company’s leadership defended certain expenditures as “operationally necessary.” The PAC has signaled that further hearings will be held to determine accountability for the budget breaches.
