A coalition of 14 Civil Society Organizations (CSOs) has filed a civil suit against the Electricity Company of Ghana (ECG) and Fidelity Bank Ghana Limited.
The lawsuit, facilitated by the AudreyGrey law firm, seeks to clarify the obligations of ECG under the Public Procurement Act (2003), amid allegations of procurement abuses and conflicts of interest involving politically exposed executives.
The coalition, comprising organizations such as the Africa Centre for Energy Policy (ACEP), the Institute for Liberty and Policy Innovation (ILAPI), and the Centre for Democratic Development (CDD), argues that ECG’s recent engagement of Fidelity as its “single account” custodian and the associated multi-million dollar forex transactions should have adhered to the Public Procurement Act.
By failing to comply with this legislation, the coalition contends that ECG has violated procurement regulations, which were designed to promote transparency and accountability in public sector dealings.
The lawsuit also raises serious concerns about potential conflicts of interest, as certain executives from Fidelity Bank sit on ECG’s Board. This entanglement, the coalition argues, creates a murky environment for decision-making, further exacerbating the procurement issues that have plagued the energy sector.
Ghana’s energy sector has long been identified as a significant contributor to the country’s fiscal challenges. The recent International Monetary Fund (IMF) programme highlighted chronic energy sector debt as a major obstacle to the nation’s economic stability.
The coalition believes that ECG’s procurement activities are central to its financial woes and must be scrutinized to prevent a repeat of the debilitating power crises that have previously affected the country.
Ghana has witnessed increasing reports of procurement abuses within ECG, with the Auditor General flagging numerous instances over the years. Most recently, the organization faced scrutiny over its procurement of smart meters.
Additionally, ACEP is investigating ECG’s multimillion-dollar procurement of a mobile application, further raising red flags regarding its operational integrity.
The coalition asserts that ECG’s procurement practices reflect a broader breakdown of governance in the energy sector, which must be addressed to avert another crisis.
They emphasize that the accumulation of unproductive debt in the energy sector contributes significantly to high inflation, currency depreciation, and the ongoing fiscal challenges facing Ghana.
ECG has attributed many of its financial difficulties to forex exchange losses, claiming they amount to tens of millions of dollars. The coalition believes that without the transparency and accountability mandated by the Public Procurement Act, these financial transactions cannot be adequately scrutinized.
Below are the 14 CSOs
1. Africa Center for Energy Policy (ACEP)
2. Democratic Credentials Network (DCN)
4. Institute for Liberty And Policy Innovation (ILAPI)
5. Africa Centre for Entrepreneurship and Youth Empowerment (ACEYE)
6. Renel Ghana Foundation (RENEL)
7. Grassroot Mobilizers Foundation (GMF)
8. Centre for Democratic Development (CDD)
9. IMANI Centre for Policy and Education (IMANI)
10. Institute of Energy Studies (IES)
11. Community Focus Foundation Ghana (CFF-Ghana)
12. ODEKRO PMO Foundation (ODEKRO)
13. iWatch Africa (iWatch)
14. Center for Extractives & Development (CEDA)
