In a bold move to address alleged financial mismanagement, Energy Minister John Abdulai Jinapor has announced the formation of a committee to investigate procurement activities at the Electricity Company of Ghana (ECG) during the Akufo-Addo administration.
The decision comes amid growing concerns over what the minister describes as “frivolous procurements” that have left the company grappling with significant financial losses.
Speaking on TV3’s Hot Issues on February 16, 2025, Jinapor revealed that approximately 3,000 containers belonging to ECG are currently stranded at the ports, accruing demurrage costs of around GHS 1.5 billion. This staggering figure has raised eyebrows, with the minister expressing dismay over the company’s procurement practices.
“It’s all because they are engaged in what I call very frivolous procurements,” Jinapor stated. “Now, they have about 3,000 containers stacked at the ports, generating demurrage of about GHS 1.5 billion. That is very unacceptable. Some of the items they’ve procured will last them ten years, while others will expire in just five years.”
The newly established committee has already begun its work, with preliminary findings pointing to significant irregularities in ECG’s procurement processes. According to Jinapor, former managers at the state-owned company failed to adhere to proper procurement guidelines, leading to what he termed “massive rot” within the organization.
“So far, the preliminary reports I have received indicate that there’s massive rot at ECG,” the minister disclosed. “The committee is doing a very good job, and we are committed to getting to the bottom of this.”
The revelations have prompted the Energy Ministry to take further action. In the coming days, Jinapor announced plans to conduct a comprehensive human resource audit and a broader review of the energy sector. These measures, he explained, are aimed at identifying inefficiencies and implementing policies to address systemic issues.
“Beyond the current investigation, there will be another technical report,” Jinapor said. “What PwC has done is a financial audit. We want to go deeper with a human resource audit and a complete audit of the entire energy sector. This will give us a clear picture of the inefficiencies so that we can tailor our policy objectives and directives to address them effectively.”
The minister’s announcement has sparked a mix of reactions from the public and industry stakeholders. While some have praised the move as a necessary step toward accountability, others have questioned the timing and potential political undertones of the investigation. Critics argue that such probes often target previous administrations, raising concerns about their impartiality.
Nevertheless, Jinapor remains steadfast in his commitment to restoring transparency and efficiency within the energy sector. “We cannot allow such reckless spending and mismanagement to continue,” he emphasized. “This is about ensuring that ECG and the entire energy sector operate in a manner that benefits the people of Ghana.”
As the investigation unfolds, all eyes will be on the committee’s findings and the subsequent actions taken by the Energy Ministry. For now, the probe serves as a stark reminder of the challenges facing Ghana’s energy sector and the urgent need for reform.
