ECG ‘dishing out’ GHC80m to Fidelity Bank in exchange rate deals – Bright Simons alleges

Bright Simons, the Vice President of IMANI Africa, has alleged that the Electricity Company of Ghana (ECG), the government-controlled electricity utility, is “dishing out” approximately GHC80 million to Fidelity Bank in sweetheart exchange rate deals.

This revelation comes after a user named Ben Boakye highlighted that ECG was buying the US dollar at a rate of GHC13.95, despite the market rate being lower, resulting in exchange losses of over GHC80 million in one month for buying $43 million.

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According to Mr Simons, ECG needs to urgently explain why it is engaging in such exchange rate deals, as it raises questions about the utility’s understanding of the true value of the Ghanaian Cedi compared to the rest of the market.

The exchange rate in October 2023 was less than GHC11.5 to the dollar for commercial banks, but ECG was allegedly buying the dollar at a significantly higher rate, leading to substantial exchange losses.