An audit of the Electricity Company of Ghana’s (ECG) revenue collection process has uncovered a GH₵490 million discrepancy in the company’s tariff and non-tariff revenue between October and December 2023.
The Public Utilities Regulatory Commission (PURC) shared the audit findings, revealing inconsistencies between revenue figures reported in ECG’s regional bank accounts and those recorded in the company’s headquarters accounts.
The report stated: “Between October and December 2023, ECG reported revenue of GH₵3.38 billion. However, an analysis of the Head Office bank accounts indicated a recorded revenue of GH₵3.87 billion.”
This discrepancy of GH₵490 million was traced to differences in how funds were transferred from ECG’s district and regional accounts to its 14 head office accounts at the end of each month.
The audit, which involved identifying and analyzing bank accounts used for ECG’s revenue collection and disbursements, highlighted flaws in the company’s internal processes. It identified gaps in the reconciliation of revenue figures, contributing to the unaccounted funds.
To address and prevent similar discrepancies in the future, the auditors made several recommendations. These include:
- Implementing debit notes for fuel purchases.
- Strengthening internal reconciliation processes.
- Leveraging revenue data from the ECG Cash Settlement Platform (ECSP) vendor.
- Reviewing the existing approach to the Single Collection Account.
- Developing a comprehensive monitoring system for fund allocation.
The findings have raised concerns about the company’s financial management practices and underscored the need for stronger oversight and accountability within ECG’s revenue collection systems.
SOURCE: Myjoyonline
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