Govt establishes single revenue collection account for ECG
Electricity Company of Ghana (ECG)
Dr. Mohammed Amin Adam, Minister for Finance, has announced the establishment of a single account for revenue collection activities at the Electricity Company of Ghana (ECG), aiming to enhance transparency and accountability.
Read full articleThis move follows criticism from Parliament's Mines and Energy Committee member, Edward Abambire Bawa, who denounced ECG's operation of over 30 accounts for revenue collection, labeling it as indisciplined and irresponsible.
Speaking at a press conference during the IMF World Bank Spring Meetings in Washington DC, Dr. Amin Adam emphasized the government's commitment to ensuring ECG no longer operates multiple accounts, streamlining all revenue through a single collection account for easier tracking.
The decision comes in the wake of the Public Utilities Regulatory Commission's (PURC) imposition of a GHȼ36,000 fine on ECG for failing to disclose all bank and investment accounts.
The PURC criticized ECG's use of funds under the Cash Waterfall Mechanism to purchase fuel, leaving the Volta River Authority (VRA) and Ghana Grid Company (GRIDCo) cashless.
In response to the regulatory actions, Dr. Amin Adam disclosed ongoing audits of the Cash Waterfall Mechanism, with the government committed to publishing findings to ensure transparency and accountability in revenue allocation.
"We have started auditing and we are also required to publish the findings from the audit. We have already done one audit and we have published the findings," Dr. Amin Adam said.
"We are going to continue to do that so that we can bring transparency and accountability, so that all revenues meant for the cash waterfall goes to the cash waterfall for the purpose for which it was created," he added.
