The report reveals that ECG failed to remit funds due to State-Owned Enterprises (SOEs) and Independent Power Producers (IPPs) through the Cash Waterfall Mechanism (CWM), a system designed to ensure equitable revenue distribution across the energy sector.
In 2023, ECG reportedly collected a total of GH¢11.5 billion in revenue. However, only GH¢8.6 billion was declared to the Ministry of Energy and relevant stakeholders, leaving GH¢2.9 billion unaccounted for.
Of the declared amount, GH¢7.3 billion was disbursed to intended recipients, leaving an additional GH¢1.2 billion in revenue unexplained.
According to the report, “The Managing Director of ECG should be held liable to account for the unremitted GH¢1.2 billion balance.”
It also recommends that both the Chief Executive Officer and the Finance Director be held responsible for the underreporting of the GH¢2.9 billion.
The unremitted funds and revenue inconsistencies have raised concerns about ECG’s financial governance and transparency.
The CWM was intended to stabilise payments in the power sector, and any breach undermines confidence and disrupts operations.
With the power sector already facing pressure due to supply challenges, the Auditor-General’s revelations have heightened calls for urgent corrective action.
The report emphasised the need for “strong enforcement of accountability measures” to restore integrity in revenue management and protect the sector from further financial instability.