ECG, BOST, GNPC Among Top Offenders in GHS 18.4bn Public Sector Financial Irregularities, Auditor-General’s Report Reveals
Ghana’s energy sector has emerged as the epicentre of public financial infractions, accounting for GH¢15.8 billion – or 86% – of all irregularities recorded across public institutions in 2024, the latest Auditor-General’s Report has revealed.
The total financial irregularities uncovered during the period stood at GH¢18.4 billion, more than double the GH¢8.8 billion recorded in 2023 – marking a 109.3% year-on-year increase. The report attributes the spike primarily to systemic inefficiencies within institutions under the Ministry of Energy.
At the heart of the sector’s fiscal distress is the Electricity Company of Ghana (ECG), which under-declared revenue by GH¢2.95 billion in 2023. Despite collecting GH¢11.59 billion in revenue, the company reported only GH¢8.64 billion to the Ministry of Energy and other oversight bodies.
Further deepening the sector’s financial woes, ECG failed to disburse GH¢1.29 billion to State-Owned Enterprises and Independent Power Producers (IPPs) under the Cash Waterfall Mechanism. The Auditor-General described these actions as “misleading and unjustified,” undermining financial transparency and public trust.
ECG was also cited for tax infractions, having withheld but failed to remit GH¢70.9 million to the Ghana Revenue Authority (GRA). Procurement irregularities were equally rife. The company procured materials through intermediaries rather than directly from manufacturers, incurring an additional cost of GH¢251 million. It also paid GH¢75 million to Hubtel Limited for a digital revenue collection platform without a signed contract.
Auditors observed that Hubtel collected GH¢10.3 billion on ECG’s behalf and deducted its 1.5% commission before depositing the remainder – a practice that contravenes public financial regulations requiring gross revenue to be accounted for prior to deductions. Notably, the contract was signed in March 2024 but backdated to January 2023, without the requisite approval from the Public Procurement Authority (PPA).
The report also flagged long-standing debts, including US$729 million owed by ECG to the Bui Power Authority. Despite this, the Authority has itself defaulted on loan repayments, attracting penalties amounting to US$846,785, and has failed to meet several social responsibility obligations.
At the Bulk Oil Storage and Transportation Company (BOST), procurement processes were conducted outside the Ghana Electronic Procurement System (GHANEPS), while key infrastructure such as the Bolgatanga-Buipe pipelines faces encroachment. Millions of cedis worth of unused equipment were found at depots in Buipe, Akosombo, and Kumasi, while contracts worth over US$2 million and GH¢23.5 million faced significant delays.
The Ghana National Petroleum Corporation (GNPC) was cited for entering a loan agreement on behalf of the Ministry of Finance without formal documentation. It also failed to obtain land title deeds for a US$6.3 million property in Tema and continued to publish unverified oil and gas reserves reports.
Further irregularities were identified at GRIDCo, which lacked a comprehensive Environmental, Social and Governance (ESG) framework despite its operational risks. The Energy Commission was also cited for the unresolved misallocation of GH¢120,378 from the Energy Fund.
Other infractions were noted at the National Petroleum Authority, the Unified Petroleum Price Fund, and other energy-related entities, mostly relating to poor documentation and weak compliance.
According to the Auditor-General, GH¢15.6 billion of the total financial irregularities is deemed recoverable, comprising debts, receivables, and misapplied funds, while the remaining GH¢2.8 billion relates to administrative breaches, including procurement and contract management failures.
With Ghana currently implementing a fiscal consolidation programme under the International Monetary Fund (IMF), the findings raise serious concerns about governance and efficiency within the energy sector. The Auditor-General has recommended swift enforcement of procurement and financial management laws, application of sanctions against culpable officials, and urgent structural reforms.
