PURC audit report uncovers GH₵490m revenue deficit at ECG

A financial audit of the Electricity Company of Ghana (ECG) has uncovered a revenue collection deficit of GH₵490 million for the period spanning October to December 2023.

The assessment, conducted by the Public Utilities Regulatory Commission (PURC), identified inconsistencies in both tariff and non-tariff revenue records.

Specifically, discrepancies were found between the revenue figures reported at ECG’s headquarters and the actual deposits made into the company’s regional bank accounts.

According to the audit findings, ECG reported total revenue of GH₵3.38 billion during the period.

However, a review of its headquarters bank accounts indicated a higher amount of GH₵3.87 billion, exposing a shortfall of GH₵490 million.

Further investigations revealed that ECG’s district and regional offices are required to remit all collected funds to 14 designated accounts at the company’s headquarters at the end of each month.

Despite this requirement, the audit highlighted inconsistencies in these transfers, resulting in the observed financial gap.

The report attributed the shortfall to deficiencies in the company’s revenue collection and bank account management processes.

To mitigate these discrepancies, the audit proposed several corrective actions. These include implementing debit notes for fuel transactions, strengthening internal reconciliation procedures, integrating data from the ECG Cash Settlement Platform (ECSP) vendor, reassessing the Single Collection Account framework, and improving monitoring mechanisms for fund disbursement.