A jaw-dropping report has pulled back the curtain on massive financial mismanagement at the Electricity Company of Ghana (ECG), exposing a web of dubious contracts, procurement breaches and of course the missing containers in recent headlines that have drained millions from state coffers.
According to findings from the report, while Ghanaians grapple with unstable electricity and rising tariffs, ECG has been busy squandering funds on shady deals, paying unqualified companies, and racking up unnecessary costs, all while failing to deliver the very service it’s meant to provide.
Millions Vanish in Suspicious Contracts
Instead of relying on its own shipping department, ECG decided to outsource clearing operations and handed out a staggering GHS 159.65 million to two private companies; Mint Logistics Ltd. and Dawards Bond Ltd. But guess what? Neither company was even qualified for the job.
Mint Logistics Ltd. wasn’t a licensed clearing agent, yet ECG awarded them the contract anyway. To make matters worse, they didn’t even do the job themselves, they simply subcontracted the work to another company, raising serious questions about why ECG chose them in the first place.
Then comes Dawards Bond Ltd., which somehow managed to clear 47 containers without paying the required GHS 4.8 million in taxes. If that wasn’t bad enough, only 46 of those containers ever reached ECG, one has mysteriously vanished into thin air.
And while these companies were getting paid, ECG left over 2,500 containers of critical electrical equipment, including transformers, cables, and meters, stuck at Tema Port. Because of ECG’s failure to clear these goods on time, Ghanaians are now on the hook for an eye-watering GHS 909 million in demurrage fees. Even more alarming, 1,328 of these containers are completely missing. Were they stolen? Illegally auctioned? The report doesn’t say, but the questions are piling up.
Procurement Rules? What Rules?
If you thought the wastefulness ended at the port, think again. The report reveals that ECG has been breaking procurement laws like they don’t exist. In 2023, a staggering 72% of all ECG contracts were awarded through single-source procurement—meaning companies didn’t have to compete for the best price. This opened the floodgates for inflated contracts, draining millions from ECG’s already struggling finances.
Then there’s the outrageous budget blowout, ECG overspent its procurement budget by 790% without approval. That’s like planning to buy one fridge but ending up with eight and still claiming you “didn’t see it coming.”
But it gets worse. ECG officials deliberately split large contracts into smaller chunks to dodge oversight, a sneaky tactic known as bulk-breaking. This allowed them to award deals to handpicked companies without raising red flags.
And let’s talk about ECG’s digital payment platform. Instead of holding a transparent bidding process, ECG quietly handed the contract to Hubtel Ltd., backdated it to January 2023, and now, surprise, surprise, Hubtel is sitting on GHS 867 million in ECG’s transaction revenues.
Who’s Responsible for This Mess?
This disaster leads straight to ECG’s leadership. The report quotes the Director of Procurement, who admitted that ECG bought more than it needed because of “pressure from above.” But who exactly was applying this pressure?
The scandal deepened when ECG merged its Procurement Directorate with the Premises & Estates Directorate in 2023, creating even more inefficiencies. With fewer checks in place, contracts were handed out recklessly, and ECG’s finances took a nosedive. Meanwhile, the former Managing Director is accused of personally influencing contract awards, steering deals to favored companies.
What Happens Next?
The report calls for a complete cleanup of ECG before the company crumbles under its own corruption. The immediate steps?
- Terminate the contracts with Dawards Bond Ltd. and launch an investigation into Mint Logistics Ltd.
- Conduct a forensic audit to track down the missing 1,328 containers.
- Investigate the Hubtel contract and force the company to release ECG’s withheld revenues.
- Prosecute officials involved in the procurement violations and shady deals.
Beyond that, ECG’s procurement system needs a complete overhaul. The report suggests bringing in independent experts to fix the mess and ensure contracts follow the law instead of benefiting a select few.
