A coalition of fourteen Civil Society Organisations (CSOs) concerned with the governance of Ghana’s energy sector filed a civil suit against the Electricity Company of Ghana (ECG) and Fidelity Bank Ghana Limited.
The legal action, spearheaded by a team of lawyers from AudreyGrey, an Accra-based law firm, seeks to compel ECG to comply with the Public Procurement Act (2003), as amended.
The coalition argues that ECG’s recent engagement of Fidelity Bank as the “single account” custodian, alongside its large-scale foreign exchange transactions with the bank involving millions of dollars, should have been subjected to public procurement procedures.
Failure to do so, they assert, breaches the Public Procurement Act.
Moreover, the CSOs have raised concerns over potential conflicts of interest, noting that some politically exposed executives from Fidelity Bank serve on ECG’s board.
The lawsuit comes against the backdrop of Ghana’s deepening fiscal crisis, exacerbated by issues in the energy sector.
ECG has frequently been flagged for procurement violations by the Auditor General, including recent allegations concerning its procurement of smart meters and a mobile app under scrutiny by the Africa Centre for Energy Policy (ACEP), one of the coalition’s members.
The coalition argues that poor procurement practices are a major contributor to ECG’s financial woes, a situation they believe is leading the country towards another energy crisis.
According to the CSOs, much of the country’s fiscal challenges, including high inflation, exchange rate depreciation, and the controversial “haircuts” on investments, can be traced back to the unproductive debt accumulated within the energy sector.
The coalition also questioned ECG’s reliance on forex exchange losses, amounting to tens of millions of dollars, and the transparency of its dealings with Fidelity Bank.
They are calling for stricter scrutiny of these transactions, something they believe can only be ensured through the Public Procurement Act’s oversight.
The case has further been complicated by the involvement of Dr. Dominic Ayine, the Member of Parliament for Bolgatanga East and Chair of Parliament’s Subsidiary Legislation Committee.
Dr. Ayine, identified as Fidelity Bank’s legal counsel, has been linked to efforts to exclude ECG from the Public Procurement Act, raising concerns of a conflict of interest.
Given his influential role in Parliament, the coalition has called on the Speaker of Parliament to address this potential ethical dilemma.
The CSOs are urging the media to closely monitor ECG’s procurement issues and their connection to Ghana’s ongoing financial challenges.
More civil society organizations are expected to join this lawsuit or initiate new legal actions in the near future.
The coalition includes: Africa Centre for Energy Policy (ACEP) Democratic Credentials Network (DCN) Institute for Liberty and Policy Innovation (ILAPI) Africa Centre for Entrepreneurship and Youth Empowerment (ACEYE) Renel Ghana Foundation (RENEL) Grassroot Mobilizers Foundation (GMF) Centre for Democratic Development (CDD) IMANI Centre for Policy and Education (IMANI) Institute of Energy Studies (IES) Community Focus Foundation Ghana (CFF-Ghana) ODEKRO PMO Foundation (ODEKRO) iWatch Africa (iWatch) Centre for Extractives & Development Africa (CEDA)
14. Center for Extractives & Development (CEDA)
