President of the Ghana Institute of Procurement and Supply, Dr. Simon Annan, has described the Electricity Company of Ghana’s (ECG) decision to sidestep the Public Procurement Authority (PPA) Act as a clear breach of the law, warning of potential legal consequences.
Dr. Annan’s concerns come as ECG faces another major scandal involving over 1,300 missing containers loaded with company equipment. Investigations have pointed to serious procurement irregularities, with allegations of corruption and mismanagement.
Several individuals have already been arrested in connection with the missing containers, deepening suspicions about ECG’s procurement practices.
Speaking on JoyNews’ The Probe on Sunday, March 30, he stated that ECG has continuously failed to comply with procurement regulations, despite multiple applications for exemption being declined by the PPA.
“This is not surprising at all. The ECG has brought this upon itself by failing to follow the proper procurement processes and systems. The law is very clear on which institutions must comply and who qualifies for exemptions,” he stated.
He pointed out that Section 14 and Section 15 of the PPA Act outline the application of the law and the process for granting exemptions to companies operating on commercial principles. ECG, he noted, had sought legal opinion from the Attorney General and had written to the Ministry of Finance regarding an exemption, but the PPA has consistently declined their request.
“If ECG is claiming to have an exemption, then where is it? The PPA has declined their exemption request multiple times, and the letter is there for all to see. The PPA believes ECG is no different from other state-owned enterprises and must comply with procurement laws,” Dr. Annan asserted.
He compared ECG to institutions such as Ghana Commercial Bank, ADB, and Consolidated Bank Ghana (CBG), which were granted exemptions because they operate in competitive markets. However, ECG, despite repeated requests, has not received such a waiver and is legally obligated to comply with procurement laws.
Breach of Procurement Laws and Accountability
Dr. Annan emphasised that ECG’s continued procurement activities without adherence to the PPA Act constitute a direct violation of the law.
“Section 92 of the Act outlines offenses and penalties for breaches of procurement rules. It is very clear that ECG has failed to comply, and we must hold its management accountable,” he stressed.
He further raised concerns about the procurement approval threshold given to the ECG Chief Executive Officer, stating that it far exceeds that of other major public entities.
“As we speak, the CEO of ECG has a $1 million approval threshold—which translates to approximately ¢50 million. Compare that to the Governor of the Bank of Ghana, whose approval limit is just ¢100,000. Are we saying ECG is more powerful than the Bank of Ghana?” Dr. Annan questioned.
He also cited Ghana Gas, a limited liability company engaged in commercial operations, noting that despite its structure, it complies with procurement laws.
“Why is ECG still pushing for exemption when it is clear that it must comply? They know what they are doing, and this must not be allowed to continue,” he added.
Dr. Annan called for stricter enforcement of procurement laws and urged regulators to take decisive action to ensure ECG complies with the Public Procurement Act to safeguard transparency and accountability in public spending.
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