FABAG Calls for Urgent Reforms at ECG Over Financial Mismanagement”

FABAG presses for ECG reform over financial mismanagement

The Food and Beverages Association of Ghana (FABAG) is demanding urgent reforms at the Electricity Company of Ghana (ECG) following fresh revelations by Parliament’s Public Accounts Committee (PAC) of widespread financial mismanagement and operational inefficiencies within the utility firm.

According to FABAG, the PAC’s latest findings, which point to unapproved spending, weak internal controls and significant amounts of unaccounted public funds, confirm long-standing industry concerns that ECG’s persistent financial challenges are largely due to mismanagement rather than inadequate tariffs.

In a statement signed by its Executive Chairman, John Awuni, FABAG described the situation as deeply troubling and unacceptable, arguing that consumers and businesses should not be forced to bear the cost of inefficiency through higher electricity tariffs.

“It is unjustifiable to burden consumers and industries with frequent tariff hikes while the company continues to lose revenue through waste, weak oversight and poor accountability,” the statement said.

The findings reinforce calls for a comprehensive restructuring of ECG’s operations to improve transparency, efficiency and service delivery, the association noted.

FABAG urged government and regulatory authorities to prioritise reforms that will ensure prudent financial management and restore public confidence in the state power distributor.

The statement further noted that the challenges at ECG have far-reaching implications for the cost of doing business in Ghana, warning that inefficiencies within the power sector continue to undermine industrial growth and competitiveness.

FABAG appealed to Parliament to intensify its oversight role and ensure that recommendations from the PAC’s report are fully implemented, including sanctions for officials found culpable of financial irregularities.

“The business community can no longer absorb the ripple effects of ECG’s inefficiencies. We need a power sector that is reliable, transparent and accountable to the Ghanaian people,” the statement added.

The Association reaffirmed its readiness to engage government and stakeholders in driving reforms that will make the electricity sector more sustainable and business-friendly.