ECG’s Missing Containers Saga: Minister Reveals Over 14 Billion Cedis expenditure in two years

The Minister of Energy and Green Transition, John Abdulai Jinapor, has disclosed some procurement breaches and abnormalities in the missing containers saga of the Electricity Company of Ghana (ECG), noting that ECG’s procurement in 2023 and 2024 shot up by 14 billion cedis instead of 2.6 billion cedis.

According to him, the missing containers are rooted in the company’s inability to clear goods at the port, leading to the auctioning of the goods.

In an interview with TV3 on Saturday, March 29, Mr. Jinapor said this happens because ECG has been procuring excessively high above what the board has approved.

“In two years. Over the two years, their procurement should have been less than 2.6 billion, thereabouts. But they shot up by 14 billion.

“And unfortunately, the containers get to the port. The containers contain cables. ECG is unable to clear their containers, and yet they are ordering more of the same cables.”

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The minister was outraged by ECG’s claim that it lacked sufficient funds to clear the cables, despite placing orders for additional aluminum cables of the same type.

“ I mean, it doesn’t make sense at all. Because your containers are stuck at the port, they contain aluminum cables. You claim you don’t have money to clear those cables, and yet you are placing orders for more of the same aluminum cables.”
“And that is why they end up with some factories. These factories then melt these brand new aluminum cables into aluminum rods. Export them to China. And they convert those rods into aluminum cables again. And ECG then orders those same aluminum cables again back into the country”.

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Mr. Jinapor pointed out that since 2022, the ECG has deviated from its established procurement structure. He revealed that, in 2023, ECG’s planned procurement approved by the board was 935 million cedis, almost a billion cedis, but by the end of the year, 2023, they had procured 8.3 billion cedis.

This means that ECG exceeded its approved procurement budget by GH¢7.4 billion.

“And the 1 billion was approved because of their revenue streams.”

Mr. Jinapor revealed that the board had failed to learn from past experiences, allowing ECG to procure GH¢8.2 billion in 2024, far beyond its approved budget of GH¢1.397 billion.

When combined with the previous year’s excess, the total procurement for 2023 and 2024 reached GH¢14 billion, significantly exceeding the allocated budget.

“One would have thought that, having experienced that, in the next year, the board would have insisted that they stick to their procurement plan and also put together a plan to clear those containers.”

“And if you look at page 13 of the report, 2024, their approved budget was 1.397 billion.”

The minister revealed that ECG’s procurement for 2024 totaled GH¢8.2 billion by the end of the year, noting that when combined with the previous year’s procurement, the total for 2023 and 2024 exceeded GH¢14 billion, exceeding their budgetary allocations.

He welcomed the fact that the issue had been brought to light and expressed satisfaction that it was being collectively discussed, adding that the next steps would involve inviting the managing director and taking subsequent actions.

“And so it’s good that this has come up. And I’m happy that all of us are discussing this issue. The issue of invitation of the MD and all those would follow now,” he noted