John Abdulai Jinapor, the Minister for Energy and Green Transition, has announced the formation of a committee to investigate the procurement activities of the Electricity Company of Ghana (ECG) under the Akufo-Addo administration. This decision follows alarming reports of “frivolous procurements” that have led to substantial financial losses for the company.

Jinapor highlighted that the ECG’s procurement processes have been plagued by inefficiencies, with around 3,000 containers currently stuck at the ports, accruing demurrage costs estimated at an astonishing GHS 1.5 billion.

The Minister characterized these procurements as “very frivolous,” pointing out examples where items purchased are expected to last for ten years or may even expire within five years.

To tackle these issues, the committee will examine ECG’s procurement practices and the financial implications of the stranded containers. Jinapor confirmed that the committee is making significant progress, with initial findings suggesting that former ECG management did not follow proper procurement procedures and guidelines.

The Minister’s early assessment indicates a “massive rot” within the ECG, leading to plans for a comprehensive audit of the energy sector. This audit will include a review of human resources and technical operations, aimed at pinpointing inefficiencies and guiding policy changes to rectify these problems.

The Ministry’s efforts are focused on fostering transparency and accountability within the energy sector, ultimately improving its overall performance. By proactively addressing these challenges, the government is demonstrating its commitment to responsible governance and effective resource management.

By Nii Ayitey Armah