A recent report by Ghana’s Auditor-General has cast a spotlight on financial irregularities within the country’s public institutions.
In the 2024 report on the Public Accounts of Ghana Public Boards, Corporations and other Statutory Institutions, there is a particular focus on a questionable payment of GHC 75,000,000 by the Electricity Company of Ghana (ECG) to Hubtel Limited, a private technology firm.
The report, covering public boards, corporations, and statutory institutions for the period ending December 31, 2024, details a range of management issues.
These issues include unaccounted payments, unretired imprests, and non-compliance with procurement regulations, with ECG’s transaction with Hubtel emerging as a significant point of concern.
Audit Findings
The Auditor-General’s findings, detailed across 333 pages, reveal systemic lapses in financial oversight and accountability in Ghana’s public sector.
Among the issues highlighted is ECG’s engagement with Hubtel for services that the report suggests may not have been fully justified or transparent.
According to the document, ECG paid GHC75,000,000 to Hubtel, but the auditors noted a lack of adequate documentation to substantiate the expenditure.
The report, specifically on page 43, underscores that this transaction raises questions about adherence to proper financial protocols, including whether competitive bidding processes were followed as required by Ghana’s Public Procurement Act.
Responsibilities of State Owned Enterprises
The auditors noted that ECG, a state-owned utility responsible for electricity distribution, engaged in several transactions lacking proper authorization or supporting evidence.
For instance, the report cites instances of unaccounted payments and failure to provide audit verification for certain expenditures.
Beyond ECG, the Auditor-General’s report covers a wide array of public entities, including the Ghana Grid Company Limited, the National Lottery Authority, and the Ministry of Health’s Volta River Authority, among others.
It identifies recurring issues such as overdue withholding taxes, unearned salaries, and non-compliance with statutory reporting requirements.
For example, the report notes that the Ghana National Petroleum Corporation lacked title deeds to its City Gate property, potentially jeopardizing valuable state assets.
Similarly, the Ghana Infrastructure Investment Fund and other agencies were flagged for unremitted funds and unaccounted expenditures.
Recommendations by Auditor General
The auditors recommended that ECG’s management provide detailed documentation to justify the payment to Hubtel and urged stricter adherence to procurement and financial regulations.
The report also calls for sanctions against officials responsible for lapses, emphasizing the need for accountability to prevent further erosion of public resources.
In response, ECG’s management stated that the payment to Hubtel was part of efforts to modernize its payment systems and improve service delivery.
However, the Auditor-General’s report suggests that these claims lack sufficient evidence, raising concerns about whether the deal provided value for money.
Hubtel has not publicly commented on the audit findings.
In its conclusion, the report urges the government to act swiftly to address the identified irregularities. It recommends that institutions like ECG strengthen internal controls, ensure compliance with procurement laws, and provide timely documentation to auditors.
This report was edited with the help of AI and human reviewers
