A coalition of 14 Civil Society Organizations (CSOs) has launched legal proceedings against the Electricity Company of Ghana (ECG) and Fidelity Bank Ghana Limited, alleging procurement violations and conflicts of interest. The lawsuit, facilitated by the AudreyGrey law firm, calls for clarification on ECG’s obligations under Ghana’s Public Procurement Act (2003).

The CSOs, including prominent organizations such as the Africa Centre for Energy Policy (ACEP), the Centre for Democratic Development (CDD), and the Institute for Liberty and Policy Innovation (ILAPI), accuse ECG of bypassing procurement laws in appointing Fidelity Bank as its sole account custodian. The coalition argues that the appointment, involving multi-million-dollar foreign exchange transactions, lacked the transparency and accountability required under the law.

A key aspect of the lawsuit involves potential conflicts of interest, as several executives from Fidelity Bank reportedly hold positions on ECG’s Board. This overlap, the coalition argues, compromises decision-making processes and further clouds the financial management of Ghana’s electricity sector.

The legal action follows a series of procurement controversies within ECG, including irregularities highlighted in Auditor-General reports and scrutiny over the purchase of smart meters. The coalition contends that ECG’s procurement failures are exacerbating financial challenges in the energy sector, an area recently flagged by the International Monetary Fund (IMF) as a major obstacle to Ghana’s economic stability.

In addition to the lawsuit, ACEP is investigating ECG’s multimillion-dollar procurement of a mobile application, raising further concerns about the company’s operational transparency.

The coalition warns that without stronger oversight and adherence to procurement regulations, ECG’s financial practices will continue to strain Ghana’s economy, contributing to inflation and currency depreciation. ECG, however, attributes much of its financial difficulties to foreign exchange losses, which it claims amount to tens of millions of dollars.

The 14 organizations involved in the lawsuit are:

1. Africa Centre for Energy Policy (ACEP)
2. Democratic Credentials Network (DCN)
3. Institute for Liberty and Policy Innovation (ILAPI)
4. Africa Centre for Entrepreneurship and Youth Empowerment (ACEYE)
5. Renel Ghana Foundation (RENEL)
6. Grassroot Mobilizers Foundation (GMF)
7. Centre for Democratic Development (CDD)
8. IMANI Centre for Policy and Education (IMANI)
9. Institute of Energy Studies (IES)
10. Community Focus Foundation Ghana (CFF-Ghana)
11. ODEKRO PMO Foundation (ODEKRO)
12. iWatch Africa (iWatch)
13. Center for Extractives & Development (CEDA)

The coalition insists that greater transparency is needed to protect Ghana’s economic future, particularly in the energy sector, where past mismanagement has led to power crises.

Source:TheDotNews