In Ghana, ACEP director alleges possible abuse in ECG procurement
Ben Boakye, executive director of the African Centre for Energy Policy (ACEP), said that politicians and individuals connected to them may benefit from procurement at Ghana's state-owned Electricity Company of Ghana (ECG). According to him, the financial problems of the power distribution company are linked not only to technical and commercial losses, but also to inefficient spending and alleged abuses in procurement.
Boakye said this on September 12 during the Newsfile program, MyJoyOnline reports. He described ECG as part of the “electoral spoils” and claimed that people appointed to manage the company may distribute business and funds among interested parties.
Claims of inflated prices
Boakye called procurement one of the main sources of financial leakage. He claims that an item that can be bought at retail for one Ghanaian cedi is allegedly procured by ECG for an average of seven cedis. In his view, this may be related to problems in procurement procedures, including single-source procurement.
According to the ACEP head, he has seen situations in which potential private suppliers were asked to increase the price in their bid in order to obtain a contract. Responding to a question about the purpose of the price difference, Boakye confirmed that the benefit, according to his claims, was to be distributed.
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Reform not only through a change in management
Boakye also questioned whether transferring ECG's management to private operators would in itself solve the company's problems. He stressed that the private sector is already involved in its operations: in particular, private companies collect payments and repair transformers and power lines.
He claims that some companies linked to ECG's cash flows have become financially stronger than the state energy company itself thanks to the contracts they received. In Boakye's view, reforms should target not only ownership issues, but also procurement, spending and the network of interests surrounding ECG.
The ACEP head added that consumers ultimately bear the costs of inefficiency through electricity tariffs and other payments in the energy sector. He called for an honest assessment of the company's problems and their elimination.
