Audit reveals discrepancies in electricity revenue distribution system
PricewaterhouseCoopers (PwC)
A recent audit conducted by PricewaterhouseCoopers (PwC) on the Cash Waterfall Mechanism (CWM), designed to streamline electricity revenue payments, has brought to light significant discrepancies between reported collections and actual disbursements.
Read full articleThe CWM, instituted to ensure transparency and efficiency in payment processes throughout the electricity value chain, has fallen short of its intended objectives, as revealed by the audit findings.
Despite its purpose, the audit identified consistent disparities between declared collections and the corresponding allocations made by the Electricity Company of Ghana (ECG), highlighting a lack of predictability and fairness in payment procedures.
Furthermore, the audit unearthed instances where payments were made from accounts outside the designated single collections account, in violation of Ministry of Finance directives.
Moreover, disbursements to non-CWM beneficiaries surpassed the allocated amounts designated for ECG, raising concerns about fiscal discipline and adherence to established protocols.
To address these shortcomings, auditors have recommended improvements in billing, invoicing, and disbursement protocols, alongside better management of non-tariff revenue by ECG.
Additionally, they advocate for transitioning the CWM to a technologically advanced platform with robust cybersecurity measures to enhance efficiency and transparency.
Moving forward, efforts will be made to recover missing data and engage stakeholders in discussions regarding the audit's recommendations, with the aim of establishing a more accountable and streamlined CWM system.
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