Energy Minister John Abdulai Jinapor has revealed a significant scandal at the Electricity Company of Ghana (ECG), where critical equipment worth $500,000 was improperly auctioned off.
The situation arose when the company failed to clear the equipment from the port in a timely manner. As a result, the equipment was sold at just 100,000 cedis, a fraction of its actual value, and then resold back to ECG for $300,000. This shocking case of fraud has sparked widespread outrage, and Jinapor is committed to taking action to prevent such practices from continuing.
Jinapor highlighted that ECG’s failure to clear essential equipment from the port has led to considerable financial losses and inefficiencies. A glaring example of this misconduct involves a container of electrical equipment valued at $500,000 that was left uncleared and subsequently auctioned off at a drastically reduced price. “I checked with the port, and the security report I received confirms that a container worth about $500,000 was imported. ECG couldn’t clear it, and somehow, someone was able to buy it at auction for 100,000 cedis, then resell it to ECG for $300,000,” Jinapor disclosed.
He condemned the situation as “unacceptable” and vowed to put an end to such practices, stating, “It will stop. And I mean it will stop. Whatever it takes to stop that, no matter how unpopular that may be, we must take action.”
Jinapor also noted that the International Monetary Fund (IMF) and the World Bank have projected a 58% increase in Ghana’s tariffs, a significant measure needed due to the current inefficiencies at ECG. He emphasized that simply raising tariffs is not the solution; instead, addressing inefficiencies, increasing revenue, and reducing losses are crucial for making progress.
Regarding the 99 bank accounts held by ECG, Mr. Jinapor stated that while some accounts will need to be closed, not all can be shut down. He explained that some accounts are necessary for consumer access. “Even though 99 accounts are unacceptable, we cannot close them all. If we were to close all the accounts, we would have to require all consumers to pay through an app, but some villages don’t even have access to the internet, so we need to ensure payment options are available for everyone,” he said.
