Hubtel has addressed claims that it had received $25 million in connection with its modernisation work for the Electricity Company of Ghana (ECG).
Hubtel clarified that it had not been paid this amount and that the $25 million figure was a ceiling approved by ECG’s Board for the project. The company noted that only about $12 million (GHS 171 million) had been spent, as it collaborated with other partners to minimize costs.
Also, the company denied allegations of undue political influence, stating that it operates independently and is focused on driving digital innovation in the utilities sector.
This address from Hubtel was necessitated due to recent allegations circulating in the media and among civil society organizations (CSOs) regarding Hubtel’s involvement with ECG. At the center of the controversy are claims that Hubtel has been paid significant sums for its role in ECG’s digital transformation, as well as accusations of political influence and an overly lucrative contract.
The company insists that no shares of Hubtel have ever been bought by a government official or any individual affiliated with a political party in Ghana. It further stated that Hubtel has not entered into any contracts with the government of Ghana, either directly or indirectly.
There were concerns raised by some civil society groups, like the Africa Centre for Energy Policy (ACEP), regarding the transparency of the Hubtel contract, including claims that Hubtel controls revenue collection before disbursing it to ECG, which may undermine Ghana’s broader efforts to ensure transparency in ECG’s finances.
Hubtel, however, emphasized that the agreement is for a five-year term and has already contributed to a 210% increase in ECG’s monthly revenues since the system went live in March 2023.
Hubtel also addressed allegations that it collects 3% of every electricity unit purchased through its platform. It clarified that its actual fee is 0.95%, with the remainder of the transaction fee going to other stakeholders in the payment chain, including mobile money providers and card networks like Visa and MasterCard which provide for metering cloud infrastructure, bank transfer charges, and next day settlement fees to meet ECG’s demand to receive all collections within 1 day of processing regardless of the settlement period of the upstream payment scheme provider.
“Hubtel does NOT get 3% of electricity bought by ECG customers. For all merchants and retailers using Hubtel’s platform, we charge a fee of 1.95% on all transactions processed through our payment platform. 1% of this 1.95% is typically retained by the mobile money and card scheme providers, and Hubtel receives 0.95% as our fees. This is no different in ECG’s case. Hubtel’s fee is 0.95%,” the statement noted.
Hubtel rejected claims of a 30-year contract, confirming that its agreement with ECG spans five years. It also highlighted its transparency and good governance practices, asserting that its work had significantly boosted ECG’s revenues at a fraction of previous costs.
“For the avoidance of doubt, the new commercial systems designed, developed, and implemented by Hubtel and other service providers have only been involved in ECG’s operations since March 2023. Therefore, attempts by some CSOs and media commentators to link our work to ECG’s past financial performance and legacy matters are completely misleading.
“Hubtel remains a company deeply rooted in the ideals of good governance, transparency, and an unyielding determination to contribute to the development of the digital economy in Ghana. We wish to assure the general public that our service at ECG has been guided by these principles at all times.”
