Kwame Pianim commends PURC for imposing fines on ECG Board

Ghanaian

Kwame Pianim, an Economist and former Chairman of the Public Utilities Regulatory Commission (PURC) has praised the PURC for its decision to penalize the board members of the Electricity Company of Ghana (ECG) for failing to notify consumers of power outages in advance.

He sees this action as a necessary reminder to all directors of public and state-owned institutions

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During an appearance on JoyNews' Newsfile, Mr Pianim emphasized the importance of audit and compliance committees on boards, stating that they play a critical role in ensuring management's adherence to agreements and regulations.

He highlighted a specific policy, the Cash Waterfall Mechanism, which required ECG to prioritize payment for raw materials before self-compensation, indicating that directors should have ensured compliance with this policy.

"If they say they didn’t know, then it means the audit and compliance committee was not functioning properly," Mr Pianim remarked.

He expressed hope that the public would support the PURC's actions, likening it to the support given to the Auditor General when presenting findings. He cautioned that failure to regulate ECG properly could lead consumers to take legal action against the commission in the future.

The comments from Mr Pianim followed the recent fine imposed by the PURC on the Managing Director, Samuel Dubik Mahama, and other ECG board members who served between January 1 and March 18, 2024.

The fine amounted to GH₵5,868,000 and was based on the board's violation of Regulation 39 of L.I. 2413, which mandates prior notification to consumers of any planned power interruptions.

Mr Pianim emphasized the need for directors at ECG to understand the importance of having responsible and competent professionals in key roles.