ECG addresses allegations on conflict of interest, forex transactions with Fidelity Bank

In response to recent claims by Civil Society Organizations (CSOs) regarding purported irregularities in forex transactions with Fidelity Bank Ghana and potential conflict of interest, the Electricity Company of Ghana (ECG) has issued a statement to bring clarity to the matter.

Contrary to allegations of facilitating a “sweetheart deal” that led to the loss of about GHS 80million to the State by purchasing $43m for the payment of IPPs at a rate of GHS 13.95, the ECG posits it procured $10.75 million through Fidelity Bank in October 2023 at rates between 11.825 and 11.965.

According to ECG, the circulated cash waterfall spreadsheet indicating a $43 million procurement at a rate of GHS 13.95 is a standard estimation sheet, not reflective of actual transactions, asserting that accurate forex procurement rates have been consistently communicated to the Government.

ECG in the statement further notes that its longstanding banking relationship with Fidelity Bank dates back to 2012 and that Fidelity Bank’s appointment as the single account operator in 2023 was based on merit and efficiency.

Asserting that, Ms. Maataa Opare, being an ECG Board member and Head of Legal at Fidelity Bank, declared her conflict of interest in compliance with the Companies Act, 2019 (ACT 992), and recused herself from discussions between the ECG and Fidelity Bank.

The power distribution company, however, acknowledged the insufficiency of the existing cash waterfall arrangements to sustain its operational and investment needs.

Adding that, efforts are underway to rationalize costs, optimize operations, and engage with policymakers for a sustainable structure.

ECG in its statement further noted that while it appreciates the oversight role of civil society organisations and social activists in the development of the country, it urged CSOs and social activists to be fair and objective in their advocacy to better the discourse and improve cooperation.

Source:norvanreports