Coalition of CSOs Files Lawsuit Against ECG and Fidelity Bank Over Procurement Violations

A coalition of 14 Civil Society Organizations (CSOs) has initiated a civil lawsuit against the Electricity Company of Ghana (ECG) and Fidelity Bank Ghana Limited, raising critical concerns over procurement practices and governance within the nation’s energy sector. Facilitated by the AudreyGrey law firm, the suit aims to clarify ECG’s obligations under the Public Procurement Act (2003) amid allegations of procurement abuses and conflicts of interest involving politically connected executives.

The coalition, which includes prominent entities such as the Africa Centre for Energy Policy (ACEP), the Institute for Liberty and Policy Innovation (ILAPI), and the Centre for Democratic Development (CDD), asserts that ECG’s recent appointment of Fidelity as its “single account” custodian for substantial foreign exchange transactions contravenes established procurement regulations. They contend that such dealings should have complied with the Public Procurement Act, intended to enhance transparency and accountability in public sector transactions.

The lawsuit also raises serious allegations concerning potential conflicts of interest, as certain executives from Fidelity Bank hold positions on ECG’s Board. This intersection of interests, the coalition argues, fosters an opaque decision-making environment, exacerbating ongoing procurement issues that have historically plagued Ghana’s energy sector.

Ghana’s energy landscape has long been a critical contributor to the nation’s fiscal challenges. The recent International Monetary Fund (IMF) programme identified chronic energy sector debt as a substantial barrier to economic stability.

The coalition emphasizes that the procurement activities of ECG are integral to its financial troubles and warrant thorough investigation to prevent a recurrence of the crippling power crises that have previously beset the country.

The energy sector has been under increasing scrutiny due to persistent reports of procurement abuses within ECG. The Auditor General has repeatedly flagged instances of mismanagement and irregularities, including the company’s controversial procurement of smart meters. Moreover, ACEP is currently examining ECG’s multimillion-dollar acquisition of a mobile application, further highlighting concerns over operational integrity.

The Coalition warns that the mounting unproductive debt in the sector significantly exacerbates inflation, currency depreciation, and the ongoing fiscal challenges facing Ghana.

Below are the 14 CSOs

1. Africa Center for Energy Policy (ACEP)
   2. Democratic Credentials Network (DCN)
   4. Institute for Liberty And Policy Innovation (ILAPI)
   5. Africa Centre for Entrepreneurship and Youth Empowerment (ACEYE)
   6. Renel Ghana Foundation (RENEL)
   7. Grassroot Mobilizers Foundation (GMF)
   8. Centre for Democratic Development (CDD)
   9. IMANI Centre for Policy and Education(IMANI)
   10. Institute of Energy Studies (IES)
   11. Community Focus Foundation Ghana (CFF-Ghana)
   12. ODEKRO PMO Foundation (ODEKRO)
   13. iWatch Africa (iWatch)
   14. Center for Extractives & Development (CEDA)

Source:norvanreports.com