Energy Minister-designate, John Jinapor, has expressed concerns about revenue leakage within the Electricity Company of Ghana (ECG).
During his vetting by Parliament’s Appointments Committee on Monday, January 13, 2025, Jinapor revealed that while ECG generates approximately GHC1.3 billion in monthly revenue, only between GHC850 million and GHC900 million is allocated to the cash waterfall mechanism. This leaves nearly GHC400 million unaccounted for within the system.
Jinapor attributed the issue to multiple contracts signed by ECG and highlighted the presence of 2,500 containers currently sitting at the ports.
He underscored the need for greater efficiency within the company to ensure better compliance with the cash waterfall mechanism.
“The main problem with ECG is not just the collection, or even how they spend or administer what they collect. They collect an average of about GHC1.3 billion every month. Only GHC850 million or GHC900 million goes into the cash waterfall mechanism. What it means is that almost GHC400 million doesn’t find its way into the cash waterfall mechanism.
“Because they have signed all kinds of contracts. Yesterday [January 12], it came to light that they have 2, 500 containers sitting at the ports. Contracts worth GHC9 billion have been signed. And because the containers are sitting at the ports, demurrage alone is GHC1.2 billion. So, beyond the collection, we also have to drill down on efficiency and ensure that they stick to the cash waterfall mechanism.”
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