PwC report exposes mismanagement, questionable practices at ECG – ACEP

Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at the Africa Centre for Energy Policy (ACEP), has praised PricewaterhouseCoopers (PwC) for its recent audit report exposing mismanagement at the Electricity Company of Ghana (ECG).

The report reveals that ECG under-declared over GH₵1 billion in revenue meant for the cash waterfall mechanism, disrupting equitable revenue distribution in Ghana's power sector. It also highlights ECG’s non-compliance with an IMF directive to consolidate its over 80 bank accounts into a single account.

In an interview on Joy FM's Top Story, Yaotse described the findings as critical for identifying inefficiencies contributing to sector debts. He criticized ECG for unilaterally altering the cash waterfall mechanism, a system designed to fairly distribute revenue among stakeholders.

This practice has deprived Independent Power Producers (IPPs) of their due funds, forcing the government to allocate approximately $1.5 billion annually to clear sector debts.

Yaotse urged ECG to address concerns through proper channels instead of unilateral actions and called for swift reforms to prevent worsening financial challenges.

ACEP emphasized that retaining funds for questionable purposes undermines the integrity of the power sector and exacerbates existing inefficiencies.