ECG misuses GHS 170 million without authorisation – Audit Reports

The management of the Electricity Company of Ghana (ECG) spent millions of cedis on various expenditure items during the 2023 fiscal year without the Board of Directors’ consent, according to financial irregularities discovered by the Auditor-General.

The Auditor-General’s report on ECG’s 2023 accounts includes the conclusions.

Samuel Atta Mills, the ranking member of the Public Accounts Committee (PAC) of Parliament, stated during a recent meeting that the report revealed ECG overspent its allowed budget on a number of expenditure items, with some surpassing their allocations by tens of millions of cedis.

The following budget overruns were highlighted in the report:

1. Foreign training: Budgeted at GH¢31 million; actual spending GH¢91 million; excess spending GH¢60 million.
2. Cleaning expenses: Budgeted at GH¢2.8 million; actual spending GH¢10.4 million; excess spending GH¢7.6 million.
3. Honorarium expenses: Budgeted at GH¢3.8 million; actual spending GH¢4.6 million; excess spending GH¢0.8 million.
4. Hotel expenses: Budgeted at GH¢9.3 million; actual spending GH¢12.2 million; excess spending GH¢2.9 million.
5. Staff fuel: Budgeted at GH¢2.8 million; actual spending GH¢3.6 million; excess spending GH¢0.8 million.
6. Communication expenses: Budgeted at GH¢4.2 million; actual spending GH¢7.9 million; excess spending GH¢3.7 million.
7. Consultancy: Budgeted at GH¢40 million; actual spending GH¢58.6 million; excess spending GH¢18.6 million.
8. Industrial relations: Budgeted at GH¢2 million; actual spending GH¢13 million; excess spending GH¢11 million.
9. Stakeholder expenses: Budgeted at GH¢3.1 million; actual spending GH¢49 million; excess spending GH¢45.9 million.
10. Publicity: Budgeted at GH¢5.7 million; actual spending GH¢21.8 million; excess spending GH¢16.1 million.
11. Professional fees and subscriptions: Budgeted at GH¢731,000; actual spending GH¢1.5 million; excess spending GH¢769,000.

The total budget for the 11 spending categories was GH¢105.431 million, but ECG spent GH¢273.6 million, leaving an overspend of GH¢168.169 million.

The Auditor-General’s report states that the expenses were made without the ECG Board’s necessary consent.

During the Public Accounts Committee’s review of the company’s audited accounts, the conclusions were emphasised.

Source: newsthemegh.com