– Since 2014 while management procures new ones
– ECG says the metres have technical challenges
The Electricity Company of Ghana (ECG) has abandoned prepayment meters and hard drawn all aluminium bare stranded conductors worth GH¢59.1 million (GH¢59,161,964.56 308).
Procured between 2014 and 2016
The items were procured between 2014 and 2016, but as at 2019, the items remained in ECG stores while management procured new ones.
These were contained in the report of the Auditor-General on the Public Accounts of Ghana: Public Boards, Corporations and Other Statutory Institutions for the period ended December 31, 2020.
The report was signed by Johnson Akuamoah Asiedu, acting Auditor-General.
Public Financial Management Act
Section 7 of Public Financial Management Act, 2016 (Act 921) requires that “a Principal Spending Officer of a covered entity shall ensure the regularity and proper use of money appropriated in that covered entity.”
Regulation 2(h) of the Financial Administration Regulations (FAR), 2004 states that “a head of government department shall preserve in good order and secure the economical use of all equipment and stores used by the department”.
Items still at stores as at August 8, 2019
However, the report revealed that the items were either partially issued or have not been issued at all, but were rather kept in the stores till date at the time of inspection on August 8, 2019.
Management procures new prepayment meters
“Our review of the procurement Status Report of 2018 and stores receipt vouchers revealed that management procured new prepayment meters for the developmental activities and abandoned the previous procurement made,” the report said.
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The Auditor-General noted that the lapse was as a result of management’s failure to issue the old stock before purchasing new meters.
Huge capital investment locked up
The report said huge capital investment had been locked up, which could have been used for other pressing needs of the company.
ECG says metres have technical challenges
In response, ECG management said that with regard to the meters, some technical challenges were identified during the initial stage of installation and as a result could not be used for the intended purpose.
Auditor General want officers who engaged in the procurement to pay
The Auditor-General recommended to ECG management to ensure that the prepayment meters and conductors are issued out to users, failing which the amount involved should be recovered from the officers who engaged in the procurement.
Right of way land disputes delays deployment of conductor 255sq
ECG management explained that the hard all aluminium bare stranded conductor 255sq were procured for some specific projects, which are now encountering right of way land disputes and management was still negotiating to secure clearance for the continuation of the affected projects.
GH¢11.5m worth of materials on loan
The report said electrical materials amounting to GH¢11.5 million (GH¢11,581,019.21) included in other trade debtors were given out on loan to eight beneficiary companies between 2014 and 2018 without any specific terms of agreement.
Absence of any agreement on materials on loan
The Auditor-General identified the absence of any agreement specifying when and how the materials are to be returned as having contributed to this anomaly, depriving ECG of the use of these materials for its own activities.
ECG management’s response
ECG management responded that “sometimes upon request from sister companies, approval is given for release of materials on loan for the ultimate good of the power sector, and the borrower(s) per agreement are required to replace the materials in an agreed manner within specific time period, and when they default invoices/quotations are issued to them for payment.”
Management said it has written to these companies for the return of the said materials and was keenly monitoring shipment of their respective procurement for the replacement of the borrowed materials by the above-mentioned institutions.
GH¢3.2m stock surplus, GH¢1.7m shortage
The Auditor-General noted that a review of store summary report showed that total amount of GH¢3.2 million (GH¢3,214,526.18) and GH¢1.7 million (GH¢1,746,094.89) were classified as stock surplus and shortage respectively.
Management explained that a committee of inquiry has been set up to go into the matter.
Customers’ payments are based on standard ruling prices, which the Adempiere Software estimated, and as a result ECG made a loss amounting to GH¢179,647.23 for materials provided on rechargeable jobs.
The report said ECG has incurred a loss amounting to GH¢586,489.89, which could be used to undertake important projects. ECG could also face challenges of replacing the materials since customers did not pay the actual cost of materials issued to them
Source: Elvis DARKO || The Finder, Accra