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Business News of Friday, 4 April 2025

    

Source: www.ghanawebbers.com

ECG's procurement scandal exposes systemic failures

ECGECG

The Electricity Company of Ghana (ECG) is facing a procurement crisis. This situation has raised concerns about the integrity of public institutions in Ghana. Over 1,300 containers, worth GH¢6 billion, have gone missing. This incident reveals negligence, mismanagement, and potential corruption within ECG.

Energy Minister John Abdulai Jinapor reported these findings. They have sparked nationwide outrage and calls for reforms. The mishandling of supplies has led to avoidable costs exceeding GH¢909 million. This highlights the need for transparency and accountability in public procurement.

The crisis deepened when the procurement director admitted most containers were acquired during his tenure. His statement revealed a culture of negligence and poor planning at ECG. He claimed over-purchasing was due to "pressure from above." This raises questions about senior management's role and political influence in procurement decisions.

Concerns also arose regarding how contracts were awarded at ECG. Former Managing Director Samuel Dubik Mahama allegedly handpicked suppliers without fair competition. This practice violates the Public Procurement Act, 2003 (Act 663). It wastes taxpayer money and fosters corruption and favoritism.

Additionally, some containers may have been left at the port intentionally. This could facilitate lucrative clearing contracts worth GH¢159 million for private companies. ECG has its own capable clearing unit, raising ethical concerns about these decisions.

Procurement expert Michael Kofi Quashie highlighted serious legal implications from these breaches. He stressed that compliance with the Public Procurement Act is crucial. The High Court of Ghana has prosecuted individuals for similar violations before.

Quashie believes the government must act decisively to address these issues. He suggests deploying forensic auditors to review procurement processes and financial records at ECG. Interviews with key personnel are essential to identify irregularities or signs of corruption.

He also advocates strengthening legal frameworks governing public procurement. Strict compliance with laws should be mandated along with independent audits and oversight. Creating platforms for public access to procurement information is vital for restoring trust.

Whistleblower protections are important for fostering transparency and accountability as well. Empowering individuals who report corruption can help build public confidence in addressing concerns.

The ECG crisis has sparked a national conversation about reforming public institutions in Ghana. As investigations continue, the public awaits outcomes and consequences for those responsible.

In conclusion, revelations about ECG's practices serve as a wake-up call for Ghana. Financial losses and misuse of funds have shaken public trust significantly. However, this crisis offers an opportunity for transformative change towards transparency and accountability in governance.

By addressing systemic issues that allowed these breaches, the government can restore confidence in state-owned enterprises' stewardship of resources. The ECG scandal underscores the urgent need for fundamental shifts in how public institutions operate today.