The Electricity Company of Ghana (ECG) has cancelled the contracts of 202 service providers whose activities were found to be undermining the company’s operations.
The decision followed an audit of 347 contracts, which revealed widespread underperformance and inefficiencies. According to management, the termination relieves ECG of potential liabilities amounting to more than $227 million.
In addition to the cancellations, ECG has also renegotiated its agreement with Hubtel, a firm that supports the utility with digital services such as the ECG power app and bill processing. Under the revised terms, Hubtel’s commission has been cut from three percent to 1.65 percent, with a narrower scope of work.
Speaking to the Daily Graphic in Accra, the General Manager for External Communications, Dr. Charles Nii Ayiku Ayiku, said the actions were part of wider reforms aimed at tightening procurement and curbing waste.
Financial Gains and Reforms
Dr. Ayiku disclosed that ECG recorded its highest-ever monthly revenue in July 2025, collecting GH¢1.74 billion. Despite the milestone, he said management identified “weak enforcement in procurement processes” and several underperforming contracts that exposed the company to serious financial risks.
“The solution was to rationalise contracts, introduce stricter reforms, and strengthen procurement processes,” he explained. Measures being implemented include Enterprise Resource Planning (ERP), stricter budgetary controls, and competitive tendering to ensure supplies match operational needs.
“With our tightened procurement processes, we would be able to avoid wasteful spending. If we don’t need it, we won’t procure it,” Dr. Ayiku stressed.
He added that the reforms will help ECG manage supplies better while ensuring compliance with the cash waterfall mechanism, despite the company’s allocations being inadequate to fully cover operational costs.
Container Investigations
On the long-standing issue of ECG’s missing containers, Dr. Ayiku revealed that investigations conducted with the Energy Ministry and port authorities had successfully located most of them.
He explained that out of 2,500 containers, 33 had not yet been traced, though partners were working to locate them. So far, 1,000 of the identified containers have been moved to ECG warehouses.
“When we conclude this exercise, we will definitely inform Ghanaians about the status of the containers,” he assured.
Dr. Ayiku emphasised that ECG remains committed to delivering stable and reliable electricity to households and businesses across the country.
