Politicians ‘milk’ ECG through procurement – Ben Boakye

Ben Boakye, Executive Director of the Africa Centre for Energy Policy, has criticized politicians and those with political ties for profiting from the Electricity Company of Ghana's (ECG) procurement practices. During a discussion on private sector participation in ECG, Boakye argued that the company's financial struggles stem from inefficiencies and alleged misuse in procurement, in addition to technical and commercial losses.

He referred to ECG as part of what he called the "spoils of election," where politicians benefit by appointing individuals to manage the company and share in the money. Some of the losses at ECG should be seen as benefits for those who take advantage of its inefficiencies, Boakye asserted. He highlighted procurement as a significant area of concern, claiming that ECG often pays much more than the market price for items.

This practice stems from sole sourcing and other procurement issues, Boakye explained, adding that private individuals often negotiate prices and receive concessions in return. Boakye questioned why an item costing one cedi in the open market would be procured by ECG for seven cedis and questioned whether such practices serve to distribute benefits among certain individuals.

He also questioned whether transferring ECG's management to private operators would solve the company's problems, arguing that the focus should be on addressing the practices that maintain inefficiencies. Boakye noted that private companies already play critical roles in ECG's operations but are financially stronger due to the contracts they receive from the utility.

He described this situation as a form of "chronic capitalism" that benefits private businesses instead of the state. Boakye emphasized that any meaningful reform of ECG must address procurement, expenditure, and the broader network of interests surrounding the utility, rather than solely focusing on ownership issues.