Fidelity Bank Denies Allegations of Procurement Misconduct in ECG Dealings
Fidelity Bank Ghana has denied allegations of procurement irregularities in its dealings with the Electricity Company of Ghana (ECG), following a report published on 24th October 2024, by a coalition of 14 Civil Society Organisations (CSOs). The bank issued a statement firmly rejecting claims of misconduct, underscoring its adherence to compliance and regulatory standards.
Contradicting assertions that it has been summoned to court, Fidelity Bank clarified that it has not received any formal legal notice and assured that it would comply with judicial procedures if required. The bank also dismissed claims that it is ECG’s exclusive banking partner, highlighting that ECG conducts business with 17 different financial institutions. Citing a recent Public Utilities Regulatory Commission (PURC) report, Fidelity noted that ECG currently holds 61 accounts across these institutions.
Fidelity addressed concerns regarding possible conflicts of interest, pointing out that its business relationship with ECG extends over 12 years, predating the appointment of any of its executives to ECG’s board. The bank reiterated its compliance with the Companies Act of 2019 and Bank of Ghana regulations, rejecting allegations of impropriety related to conflicts of interest or foreign exchange transactions.
Fidelity clarified its role in facilitating foreign exchange for ECG, specifying that it arranged a total of USD 10.75 million for the utility company during the period in question, significantly lower than the alleged USD 40 million per month. The bank also detailed its extensive involvement in Ghana’s energy sector, including financing for the Kpone Thermal Power Plant and independent power projects, with investments exceeding USD 700 million by 2014. Additionally, the bank has been an active participant in the GHS 10 billion ESLA PLC Bond Programme since 2017.
Read Details of Statement Below:
