The Minister of Energy and Green Transition, John Abdulai Jinapor, has revealed that the previous management of the Electricity Company of Ghana (ECG) committed the company to contracts worth about $9 billion, exceeding the board-approved procurement threshold of $3 billion by an alarming $6 billion. The result, he said, was a financial and operational crisis that left over 2,600 containers of equipment stranded at Ghana’s ports.
Speaking during a familiarization visit to ECG, the Minister described the state-owned power distributor as a “cardinal link” in Ghana’s energy value chain whose performance is “critical” to national stability. He said the current administration inherited a distressed ECG plagued by operational bottlenecks, financial liabilities, and procurement mismanagement that continue to weigh heavily on the sector.
Containers Piling Up at the Port
According to Mr. Jinapor, the stranded containers contained essential equipment including transformers, cables, and poles that ECG had purchased under the bloated contracts. However, the company lacked the funds to clear the shipments from the port due to the excessive financial commitments made without board approval.
“When I set up a committee to investigate, they couldn’t even trace most of the containers,” he disclosed. “An inter-agency taskforce involving National Security, Customs, the GRA, and the Chief of Staff’s office was later formed, and the team has now accounted for more than 2,600 containers, with about 1,500 already moved from the ports.”
Procurement Breach and Accountability
Mr. Jinapor described the situation as a massive breach of procurement protocols. “You are given a threshold of $3 billion, yet you end up committing $9 billion,” he said, adding that the financial overreach saddled ECG with unpayable liabilities, while the company simultaneously accrued demurrage charges on the stranded containers.
He confirmed that a comprehensive report on the matter has been submitted to the Attorney General for legal review. “If people are found culpable, the law will take its course. This is not about victimization; it’s about accountability for taxpayer money,” he emphasized.
Reforming ECG’s Operations
Since assuming office, Mr. Jinapor said his ministry and the new ECG management have taken decisive steps to restore efficiency and financial discipline. He cited the review of 347 contracts, of which 202 were terminated without legal costs because they were deemed unnecessary.
The company’s procurement budget, he said, has been cut from nearly $9 billion to just over $2 billion, with current spending focused strictly on essential items such as transformers and meters. He also highlighted operational progress, including the recovery of 200 transformers from storage and the emergency procurement of 100 new ones to address widespread transformer overloads.
Broader Energy Sector Implications
The Minister noted that the ECG issue forms part of a wider energy sector crisis that has drained public finances. As of now, Ghana’s energy sector debt stands at GH¢80 billion, with GH¢28 billion from the national budget being used to offset sector shortfalls, a figure projected to rise to GH¢35 billion next year.
“That is your money,” Jinapor told ECG staff, explaining that funds meant for infrastructure projects such as roads and hospitals are being redirected to cover energy sector losses.
Restoring Confidence and Transparency
Mr. Jinapor commended the current ECG management for their commitment to transparency and reform, describing their work as “a strong signal that the culture of impunity in the energy sector is ending.”
He assured the public that the government will continue to prioritize accountability while strengthening institutions across the energy value chain. “We cannot afford to repeat the mistakes of the past,” he said. “ECG must become not just a power distributor, but a model of efficiency, transparency, and national service.”
