Missing ECG containers: ECG in clear breach of procurement laws – Dr Annan

Dr. Simon Annan, President of the Ghana Institute of Procurement and Supply, criticized the Electricity Company of Ghana (ECG). He called their decision to bypass the Public Procurement Authority (PPA) Act a clear legal breach. He warned that this could lead to serious legal consequences.

ECG is currently involved in a scandal over 1,300 missing containers filled with equipment. Investigations have revealed significant procurement irregularities, including allegations of corruption and mismanagement. Several arrests have been made related to these missing containers.

On JoyNews' The Probe on March 30, Dr. Annan expressed his concerns. He noted that ECG has repeatedly failed to follow procurement regulations. The PPA has denied multiple requests for exemptions from ECG.

Dr. Annan stated, “This is not surprising at all.” He emphasized that ECG's issues stem from ignoring proper procurement processes. The law clearly defines which institutions must comply and who can receive exemptions.

He referenced Sections 14 and 15 of the PPA Act regarding compliance and exemption processes. ECG sought legal advice from the Attorney General and contacted the Ministry of Finance about an exemption request, but it was consistently denied by the PPA.

“If ECG claims an exemption, where is it?” he asked. The PPA believes ECG should follow procurement laws like other state-owned enterprises.

Dr. Annan compared ECG to banks like Ghana Commercial Bank and ADB, which received exemptions due to competitive operations. However, ECG has not received such a waiver and must comply with procurement laws.

He stressed that ECG’s ongoing procurement activities violate the PPA Act directly. “Section 92 outlines offenses and penalties for breaches,” he said, insisting management must be held accountable.

He raised concerns about the approval threshold for the CEO of ECG, which is $1 million or about ¢50 million. In contrast, the Governor of the Bank of Ghana has an approval limit of just ¢100,000.

“Are we saying ECG is more powerful than the Bank of Ghana?” Dr. Annan questioned further.

He also mentioned Ghana Gas as a limited liability company that complies with procurement laws despite its structure.

“Why does ECG still seek exemption when compliance is necessary?” he asked rhetorically.

Dr. Annan urged stricter enforcement of procurement laws and called for regulators to ensure ECG follows the Public Procurement Act for transparency in public spending.