Finance Minister Mohammed Amin Adam has announced the establishment of a single account for the revenue collection activities of the Electricity Company of Ghana (ECG).
Previously, in March, Edward Abambire Bawa, a member of the Mines and Energy Committee of Parliament, criticized ECG for maintaining over 30 accounts for revenue collection, labeling it as undisciplined and irresponsible.
However, during a press conference held on the sidelines of the IMF World Bank Spring Meetings in Washington DC, Dr. Amin Adam emphasized the Ministry’s initiative to streamline ECG’s operations by eliminating multiple accounts.
“We have implemented a single collection account system. Henceforth, ECG will consolidate all revenue collection through this singular account, making it easier for tracking purposes,” Dr. Amin Adam stated.
This development follows the Public Utilities Regulatory Commission’s (PURC) imposition of a fine of GHȼ36,000 on ECG for its failure to disclose all bank and investment accounts to the Commission. The fine stemmed from ECG’s utilization of funds under the Cash Waterfall Mechanism for purchasing fuel, leaving the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo) cash-strapped between November 2023 and January 2024, thus affecting their operational capabilities negatively.
The PURC had requested information from ECG on three occasions, specifying deadlines ranging from March 25 to April 2, 2024. However, upon review, the Commission found ECG’s submissions to be incomplete, leading to the imposition of the regulatory penalty.
Dr. Amin Adam further disclosed that the government is conducting an audit of the Cash Waterfall Mechanism. He emphasized that addressing the mechanism’s challenges would enhance transparency and accountability in revenue collection, ensuring its appropriate utilization.
“We have commenced auditing and will continue to do so, with a commitment to publish the audit findings. This endeavor aims to uphold transparency and accountability, ensuring that revenues allocated under the Cash Waterfall Mechanism serve their intended purpose,” Dr. Amin Adam elaborated.
