ECG procurement is where politicians ‘milk’ the company – Ben Boakye

Ben Boakye, Executive Director of the Africa Centre for Energy Policy (ACEP), has criticized politicians for profiting from procurement processes at the Electricity Company of Ghana (ECG). Speaking on JoyNews' Newsfile, Mr Boakye highlighted that the power distributor is part of the "spoils of election" where politicians distribute benefits to themselves and their associates.

He argued that inefficiencies, including alleged abuses in procurement, are major contributors to ECG's financial difficulties beyond technical and commercial losses. Mr Boakye stated that some of the losses classified within ECG are actually benefits for individuals and businesses exploiting inefficiencies within the company. He noted that ECG procures items at prices significantly higher than market value, attributing this to procurement issues such as sole sourcing.

He emphasized that the high costs and inefficiencies within ECG must be given the same attention as technical and commercial losses. Mr Boakye questioned why an item costing one cedi on the open market would be procured by ECG for seven cedis, questioning the logic behind such pricing. He questioned whether private sector involvement would resolve ECG's issues, arguing that the focus should be on rectifying the practices that have allowed inefficiencies to persist.

He also pointed out that private businesses, including those involved in revenue collection and power line maintenance, are financially stronger than ECG itself due to contracts awarded by the utility. Mr Boakye characterized this as "chronic capitalism," with private companies profiting from the inefficiencies within ECG. He rejected the notion that the burden of ECG's financial challenges falls solely on the government, asserting that consumers are already paying through high electricity tariffs.