An audit conducted by PricewaterhouseCoopers has revealed that the investigation into the activities of the Electricity Company of Ghana (ECG) has found that the financial management practices directly contravene this key guideline, which was implemented to streamline operations and enhance financial transparency.
The report disclosed that the company kept approximately 84 bank accounts with 20 different banks, despite directives under Ghana’s International Monetary Fund (IMF)-supported program to consolidate all revenue collections and disbursements into a single account.
“We observed through our validation procedures that ECG operates multiple bank accounts (84 accounts) with 20 different banks. This scattered approach to banking is inconsistent with the directive to centralise all financial activities under a single collection account,” the PwC audit stated.
The report has therefore recommended that ECG consider consolidating its financial operations by partnering with a single bank that has an extensive nationwide branch network.
It stated that the move would reduce the need for multiple accounts, streamline operations, and improve transparency in revenue and disbursement processes.
The auditors further revealed that the company failed to make timely payments to Independent Power Producers (IPPs) and regulatory bodies. Under Cash Waterfall Mechanism (CWM) guidelines, ECG is required to make payments by the 22nd of each month, a commitment the company has frequently missed.
“Untimely payments to IPPs and regulatory bodies have led to delays and disruptions in the energy sector, undermining the smooth operation of Ghana’s power distribution system.’’
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