The Executive Director of the Ghana Center for Democratic Development (CDD Ghana), Professor H Kwasi Prempeh, has commended the recent fine imposed on board members of the Electricity Company of Ghana (ECG) by the Public Utilities Regulatory Commission (PURC). The fine of Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS5,868,000.00) was for the board’s failure to notify customers about power outages between January and March this year.
In a statement released by the PURC on April 15, 2024, the Commission cited the ECG board members for not complying with the statutory notice required under Regulation 39 of L.I. 2413. The fine of GHS 5,868,000.00 was imposed for each of the 163 breaches.
According to the PURC, the penalty was necessary to ensure accountability and protect the interests of consumers. The Commission expressed concerns that the penalty could have adverse effects on the quality of service and consumers if paid from ECG’s revenue. Therefore, the Board Members of ECG who were in office between 1 January to 18 March 2024 have been held liable for the payment of the fine.
Prof Prempeh took to his Facebook page to address the issue, emphasizing the importance of enforcing accountability in state-owned enterprises (SOEs). He called for laws that would allow citizens to bring actions against SOE directors to enforce their fiduciary duties.
The PURC directed the ECG board members to pay the GHS 5,868,000.00 into a dedicated fuel account under the joint control of the Ministry of Energy and the Ministry of Finance by 30th May 2024. Additionally, ECG was ordered to fulfill its obligations under the Cash Waterfall Mechanism by paying GHS446,283,706.29 to Category B beneficiaries.
This development highlights the significance of corporate governance in SOEs and the need for accountability to ensure the efficient and fair provision of services to consumers.
