There is a looming legal tussle initiated by a coalition of 14 Civil Society Organizations (CSOs) against the Electricity Company of Ghana (ECG) and Fidelity Bank over alleged procurement breaches and irregularities in the dealings of the two entities.
The case filed at the court by Accra-based AudreyGrey Law Firm, seeks to challenge the legality of ECG’s recent transactions with Fidelity Bank alleging that the transaction is in breach of the Public Procurement Act of Ghana.
The CSOs are demanding that the High Court compel ECG to uphold the country’s procurement laws as the power distribution company’s engagement of Fidelity Bank as a custodian of its single account along with subsequent large-scale foreign transactions is in breach of the required procurement procedures.
It is the firm belief of the concerned CSOs that the disregard for the public procurement laws is compounding the issues in the energy sector escalating financial mismanagement, including forex losses. They also add that the country’s economy is also taking a hit due to the energy sector inefficiencies.
The coalition also raised issues of conflict of interest in relation to Dr. Dominic Ayine, MP for Bolgatanga East and chair of Parliament’s Subsidiary Legislation Committee, who also serves as Fidelity Bank’s legal representative. They allege that Ayine’s dual roles may impede the fair application of procurement regulations to ECG, potentially shielding the utility from accountability.
The CSOs maintain that a ruling in their favor could reshape financial protocols in the energy sector by holding ECG accountable to more stringent standards, potentially impacting the state utility’s existing partnerships and operations.
The charge is led by groups like the Africa Centre for Energy Policy (ACEP), the Democratic Credentials Network (DCN), the Institute for Liberty and Policy Innovation (ILAPI), and the IMANI Centre for Policy and Education, including several others.
