Osei-Asare Urges ECG to Fix Financial Irregularities Before Raising Tariffs
PAC Chair urges the Electricity Company of Ghana to fix financial mismanagement before seeking higher tariffs.
- Abena Osei-Asare urges ECG to fix financial mismanagement before requesting higher tariffs
- ECG spent nearly double its approved 2024 budget
- PAC can summon current executives to address past irregularities and promote transparency in public institutions
Chairperson of Parliament’s Public Accounts Committee (PAC), Abena Osei-Asare, has called on the Electricity Company of Ghana (ECG) to resolve internal financial irregularities before requesting further tariff hikes.
Her remarks follow a PAC review of the 2024 Auditor-General’s Report, which revealed significant overspending by ECG. Foreign training expenses soared from GHS21 million to GHS91 million, cleaning costs jumped from GHS2.8 million to GHS10.4 million, and consultancy fees increased from GHS40 million to GHS58.6 million.
The call comes after a 1.14 percent increase in electricity tariffs on October 1, 2025, and ECG’s proposal to the Public Utilities Regulatory Commission (PURC) for a 225 percent hike in its Distribution Service Charge for the 2025–2029 period.
In an interview on Monday, November 10, Mrs. Osei-Asare noted that ECG had spent nearly double its approved budget. “The confirmed budget was GHS144 million, but they spent over GHS300 million, exceeding it by about GHS189 million. They should clean their house first because they claim tariff increases are necessary to pay IPPs and other obligations,” she said.
The PAC Chair further highlighted that ECG collected about GHS11.9 billion through its Cash Waterfall Mechanism, the account used to pool revenues before disbursing to Independent Power Producers (IPPs). She emphasized that PAC has the authority to summon current executives to account for past financial infractions, even if those individuals were not involved when the issues occurred.
Mrs. Osei-Asare also praised some current executives for taking proactive steps to address legacy financial mismanagement, despite not being responsible for past errors.
“Several CEOs and directors have discharged themselves well, taking steps to correct issues they did not create. For example, the CEO of MIIF and the head of the Northern Development Authority have shown commitment despite recently assuming their roles,” she added.
She reiterated PAC’s dedication to promoting accountability and transparency in public institutions, stressing that effective oversight is crucial to restoring public trust in state-owned enterprises.
