PURC Calls for Reforms After Uncovering GH₵490 Million Revenue Gap at ECG
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A recent audit by the Public Utility Regulatory Commission (PURC) has revealed a startling GH₵490 million revenue shortfall at the Electricity Company of Ghana (ECG) during the last quarter of 2023. This discrepancy has raised serious concerns about the utility company’s financial management and operational efficiency.

Audit Findings

The audit covered the period from October to December 2023 and uncovered a gap between ECG’s reported revenue and actual bank records. While ECG declared GH₵3.38 billion in revenue, a detailed review of its head office bank accounts showed a higher figure of GH₵3.87 billion—creating an unaccounted variance of GH₵490 million.

The report attributes the shortfall to:

  • Inconsistencies between district and regional account transfers to the central head office.
  • Weaknesses in internal reconciliation processes.
  • A lack of robust monitoring mechanisms for revenue tracking.

Key Recommendations

The PURC has proposed several measures to address the issue and prevent future occurrences, including:

  • Introduction of Debit Notes: Ensuring better tracking of fuel purchases.
  • Enhanced Reconciliation Processes: Strengthening internal controls to align reported figures with bank account data.
  • Utilization of Revenue Data Platforms: Leveraging the ECG Cash Settlement Platform for accurate revenue reporting.
  • Revising Single Collection Account Policies: Optimizing the current approach to streamline fund transfers.
  • Developing Monitoring Systems: Implementing robust frameworks to oversee revenue allocation and usage.

These reforms aim to enhance transparency and accountability within ECG’s operations.

Broader Implications

The findings of this audit underscore the need for immediate reforms within ECG to restore public trust and financial stability. The PURC has emphasized that failing to act on these recommendations could jeopardize the sustainability of one of Ghana’s most vital utilities.

This report serves as a wake-up call for ECG to strengthen its financial systems and ensure the efficient use of public funds. Stakeholders are watching closely as ECG implements the necessary changes to address these alarming findings.