The Electricity Company of Ghana (ECG) has come under fire for violating the cash waterfall mechanism (CWM) and the directives from both the President and the International Monetary Fund (IMF) to run a single account. Edward Bawa, the Member of Parliament for Bongo, has criticized the board members of ECG for their role in these violations.
According to Mr. Bawa, ECG refused to make its accounts available for audit by Price Waterhouse Coopers (PwC), despite the requirement to do so. The documents submitted by ECG to the Public Utilities Regulatory Commission (PURC) revealed that the company is running 61 accounts instead of a single account as advised by the IMF and President Akufo-Addo.
In an interview on The Key Points, Mr. Bawa expressed his disappointment in the board members of ECG, stating that they have no moral grounds to continue occupying their positions. He emphasized that the actions of ECG are a clear violation of directives from both the President and the IMF, as well as the concept of the cash waterfall mechanism.
While PURC has fined the board of ECG GHS5.8 million for various infractions, including failure to adhere to maintenance notices, the board members have rejected the fine. Their lawyers argued that they are not responsible for the day-to-day administration of the company and should not be held liable for its defaults.
Despite the legal limitations on surcharging individual board members, Mr. Bawa believes that the board should have been dissolved immediately for their role in the violations. The controversy surrounding ECG continues to raise questions about accountability and transparency within the power distribution company.
