Minister for Energy and Green Transition, Mr. John Abdulai Jinapor, has revealed a staggering GH¢14 billion in unbudgeted spending by the Electricity Company of Ghana (ECG) between 2023 and 2024. This colossal sum dwarfs the initial budget of just over GH¢2 billion for the same period and is being directly linked to the infamous “missing containers” issue.
Mr. Jinapor made these disclosures on Monday, June 3, when he appeared before the Parliamentary Committee on Mines and Energy. His appearance was to provide an update on the status of the missing containers and outline measures being taken to prevent similar occurrences in the future.
The Minister presented detailed figures to the committee, illustrating the extent of the overspending. In 2023, ECG’s budgeted procurement was GH¢935.4 million, but actual procurement soared to GH¢8.329 billion. This represents a massive deviation of GH¢7.393 billion from the planned spending.
“They procured more than GH¢7.3 billion, what they planned to procure, and that means that the money is not available, but you’ve procured,” Mr. Jinapor stressed.
The trend of excessive procurement continued into 2024. While the planned procurement was GH¢1.3 billion, actual spending reached GH¢8.2 billion, resulting in a deviation of GH¢6.8 billion. “If you add the two, it means that in two years, the ECG deviated by 14 billion over and above what they planned to procure,” the Minister explained, directly attributing the backlog of containers at the port to this significant overspending.
Mr. Jinapor also expressed deep concern over ECG’s procurement practices, particularly regarding the clearance of goods. He questioned why ECG contracts companies to supply goods but fails to place the obligation of clearing the containers on the suppliers. “Why should ECG be the company to clear the container?” he queried, emphasizing that standard practice dictates delivery of products at the warehouse before payment is made.
Adding to the gravity of the situation, Mr. Jinapor revealed his disappointment that “most of these contracts were awarded without board approval. That is unacceptable. And because they were dollar-denominated, the depreciating cedi has made the situation worse.”
The Minister assured the Committee that the current ECG Managing Director is now complying with new directives, and the Ministry has tasked the ECG board with closely monitoring all future procurement activities. He also affirmed that the government would adhere to due process in addressing the issue of the containers stuck at the port, engaging relevant authorities such as port authorities and customs.
“Rest assured honorable members that we would not do anything illegal. And that’s why we are being meticulous so that tomorrow I don’t stand accused of a similar offense,” he stated.
Mr. Jinapor disclosed that a committee would be established to validate the figures and get to the bottom of the situation, underscoring the importance of a comprehensive investigation.
