A 2023 Auditor-General’s report has uncovered significant overspending by the Electricity Company of Ghana (ECG), revealing that the state-owned power distributor exceeded its approved budget by nearly GH¢170 million across several expenditure items without obtaining board approval.
The findings were highlighted by the Ranking Member of Parliament’s Public Accounts Committee (PAC), Samuel Atta Mills, during a recent committee sitting examining the report.
According to the report, ECG’s management at the time overspent on 13 budget lines, with several expenditure items far exceeding their approved allocations.
One of the biggest increases was recorded under foreign training, where the company spent GH¢91 million despite budgeting GH¢31 million, representing an overspend of GH¢60 million.
Stakeholder expenses also drew attention after ECG spent GH¢49 million against an approved budget of GH¢3.1 million.
Publicity costs were nearly four times the approved allocation, rising from a budget of GH¢5.7 million to GH¢21.8 million, while industrial relations expenses increased from GH¢2 million to GH¢13 million.
The report also revealed that consultancy expenses rose from a budgeted GH¢40 million to GH¢58.6 million without board approval.
Other expenditure items that exceeded their approved budgets included hotel expenses, which increased from GH¢9.3 million to GH¢12.2 million, communication expenses, which climbed from GH¢4.2 million to GH¢7.9 million, and cleaning expenses, which jumped from GH¢2.8 million to GH¢10.4 million.
ECG also overspent on staff fuel, honourarium payments, and professional fees and subscriptions.
The expenditure breakdown cited in the Auditor-General’s report includes:
- Foreign training: GH¢31 million budgeted, GH¢91 million spent.
- Cleaning expenses: GH¢2.8 million budgeted, GH¢10.4 million spent.
- Honorarium: GH¢3.8 million budgeted, GH¢4.6 million spent.
- Hotel expenses: GH¢9.3 million budgeted, GH¢12.2 million spent.
- Staff fuel: GH¢2.8 million budgeted, GH¢3.6 million spent.
- Communication: GH¢4.2 million budgeted, GH¢7.9 million spent.
- Consultancy: GH¢40 million budgeted, GH¢58.6 million spent.
- Industrial relations: GH¢2 million budgeted, GH¢13 million spent.
- Stakeholder expenses: GH¢3.1 million budgeted, GH¢49 million spent.
- Publicity: GH¢5.7 million budgeted, GH¢21.8 million spent.
- Professional fees and subscriptions: GH¢731,000 budgeted, GH¢1.5 million spent.
The revelations have intensified scrutiny over ECG’s financial management and are expected to feature prominently in the Public Accounts Committee’s ongoing examination of the Auditor-General’s findings.
