ECG squanders GHC 59 million on ‘Fake Meters’
The Auditor-General (A-G) has exposed the Electricity Company of Ghana (ECG), for wasting more than GHC 59million between 2014 and 2016 on fake prepaid meters and conductors.
Due to the non-usable nature of the procurement, the machines are still locked up in the company’s warehouse, the A-G shockingly revealed in its latest Audit Report (2020).
According to the state auditor, ECG procured the 265 meters and conductors but at the time of the auditing in 2019, the meters have not been deployed.
The Auditor-General recommended that the management of ECG ensure that the meters and conductors are installed.
However, there is no certainty that the machines are in a usable state, in what will consequently amount to a massive financial loss to the state.
The A-G is recommending that if the machines are not deployed, the officers at ECG in charge of the dubious procurement should be surcharged.
Aside from making dubious purchases, the A-G’s report uncovered huge waste in power supply, stating that ECG lost 2,649.08 GWh, representing 24.30% of power purchased from the power-producing companies.
The A-G also found out that the ECG does not have an Audit Committee which is supposed to provide financial oversight on its operations. This makes such wanton waste go unchecked.
The report, therefore, demanded that the management of ECG establishes an Audit Committee in accordance with the Public Financial Management Act, 2016 (Act 921).