The Electricity Company of Ghana’s persistent demand on consumers to cough up hard earned income to pay higher rates for the company to survive, rings hallow against revelations by a forensic audit commissioned by Government cataloguing a cocktail of fraud and waste at ECG’s backyard.
One of the colossal disclosures is the amount the company loses to its system. According to the forensic audit report, the company loses ?256 billion per annum in its system. This colossal amount is lost mainly to power waste, in order words power for which no one pays. The audit report recommended that the management of ECG should review its operation to address the losses.
Aside this waste in the ECG system, the audit implicated some officials of the company and some accomplices for their involvement in different levels of massive fraud. The officials include a former Managing Director of the company, Chief M.B. Adam, the Director Finance, C.S. Tetteh and E.Y. Nyarko of the Company’s Materials Department. Others include S. Boakye-Appiah and Mariston Co. Ltd.
The forensic audit report recommended the prosecution of the former Managing Director, Chief of M.B. Adam for the loss of ?12 billion for the award of procurement contract for metres without the Board’s approval and excessive mark-up of cost of metres.
Another official the audit recommended for prosecution for this transaction is C.S. Tetteh. The audit report also recommended that the beneficiary company- Mariston Co. Ltd- should be made to refund part of the mark-up. Outstanding payments to Mariston should be withheld pending any court action.
The former Managing Director, Chief Adam and another official, E.Y. Nyarko are to face prosecution for financial losses to the tune of ?200 million for unfair pricing and overstocking of batteries. They are also required to refund the lost amount. Aside that Adam and Nyarko are to refund interest on the sum of ?677 million lost through over stocking of tyres.
The report has also recommended Nyarko’s prosecution for over pricing of tyres by GM International Ltd. The audit estimates that an amount of ?614 million was lost to the company. Aside prosecution, Nyarko is to refund the amount.
He faces another prosecution from alleged involvement the over pricing of tyres by Palmers Green Ltd to the tune of ?253.7 million. The audit report also recommended that Nyarko be made to refund the amount involved.
The audit also recommended that Nyarko and another colleague S. Boakye-Appiah should be made to refund an amount of ?65 million and be made to face disciplinary action. Nyarko is also to face disciplinary action from the management of the company for the loss of ?690.7 million through overpricing of Cable Lugs by Mariston Investments Co. Ltd. Mariston Co. Ltd are also required to refund excess profit the company made on this transaction.
Source: GhanaWeb
