ECG Financial Irregularities: ECG Overspends GH¢168 Million Without Approval

ECG financial irregularities have been uncovered by the Auditor-General, with the Electricity Company of Ghana (ECG) found to have overspent its approved budget by GH¢168.169 million in the 2023 financial year without obtaining the required approval from its Board of Directors.

The findings are contained in the Auditor-General’s report on ECG’s 2023 financial statements and were disclosed during the Public Accounts Committee (PAC) sitting of Parliament.

According to the report, ECG management exceeded approved budget allocations across several expenditure areas, raising concerns about the company’s financial controls and compliance with internal approval procedures.

PAC Ranking Member, Samuel Atta Mills, said the audit revealed that ECG spent GH¢273.6 million on 11 major expenditure items, despite having an approved budget of GH¢105.431 million.

The Auditor-General noted that the additional spending was undertaken without the necessary authorisation from the company’s Board of Directors.

Breakdown of ECG’s Budget Overruns

The report highlighted the following excess expenditures:

Foreign Training

• Approved budget: GH¢31 million
• Actual expenditure: GH¢91 million
• Excess spending: GH¢60 million

Cleaning Expenses

• Approved budget: GH¢2.8 million
• Actual expenditure: GH¢10.4 million
• Excess spending: GH¢7.6 million

Honorarium Expenses

• Approved budget: GH¢3.8 million
• Actual expenditure: GH¢4.6 million
• Excess spending: GH¢800,000

Hotel Expenses

• Approved budget: GH¢9.3 million
• Actual expenditure: GH¢12.2 million
• Excess spending: GH¢2.9 million

Staff Fuel

• Approved budget: GH¢2.8 million
• Actual expenditure: GH¢3.6 million
• Excess spending: GH¢800,000

Communication Expenses

• Approved budget: GH¢4.2 million
• Actual expenditure: GH¢7.9 million
• Excess spending: GH¢3.7 million

Consultancy Services

• Approved budget: GH¢40 million
• Actual expenditure: GH¢58.6 million
• Excess spending: GH¢18.6 million

Industrial Relations

• Approved budget: GH¢2 million
• Actual expenditure: GH¢13 million
• Excess spending: GH¢11 million

Stakeholder Expenses

• Approved budget: GH¢3.1 million
• Actual expenditure: GH¢49 million
• Excess spending: GH¢45.9 million

Publicity Expenses

• Approved budget: GH¢5.7 million
• Actual expenditure: GH¢21.8 million
• Excess spending: GH¢16.1 million

Professional Fees and Subscriptions

• Approved budget: GH¢731,000
• Actual expenditure: GH¢1.5 million
• Excess spending: GH¢769,000

The revelations have renewed calls for improved financial discipline and stronger oversight mechanisms within state-owned enterprises.

Members of the Public Accounts Committee questioned why ECG management committed expenditures beyond approved limits without seeking authorisation from the company’s Board of Directors.

The Auditor-General’s report adds to growing concerns over financial irregularities among public institutions, particularly regarding budget compliance, expenditure controls, and accountability in the use of public funds.

Source:www.ghanaweb.com