ACEP: Ghana ECG Procurement Corruption Alleged, Inflated Prices

• Ben Boakye of ACEP alleges that politicians and politically connected individuals benefit from corrupt procurement practices at Ghana's Electricity Company of Ghana (ECG).
• He claims items purchased by ECG can cost seven times their market value, citing sole sourcing as a key factor in these inflated prices.
• Boakye argues that what are classified as ECG's losses are actually benefits for those exploiting the company's inefficiencies through procurement.
• He suggests that addressing these expenditure problems is as crucial for ECG's sustainability as tackling technical and commercial losses.
• Boakye emphasizes that resolving the underlying corrupt practices, rather than merely changing ownership, is essential for improving ECG's operations.

For lawyers advising clients on public procurement in Ghana, especially with state-owned enterprises like ECG, these allegations underscore the critical need for heightened due diligence on contract terms and pricing.

Ben Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), has leveled serious accusations against politicians and individuals with political connections, alleging their involvement in corrupt procurement practices at the Electricity Company of Ghana (ECG). Speaking on JoyNews’ Newsfile on Saturday, September 12, 2026, during a discussion concerning potential private sector involvement in ECG, Boakye characterized the state-owned power distributor as an integral part of what he termed the "spoils of election." He asserted that this is where political figures "milk" the company, facilitating the distribution of business opportunities and funds through strategic appointments.

Boakye contended that what is often categorized as financial losses for ECG actually translates into benefits for numerous individuals and businesses that exploit the company's inherent inefficiencies. He highlighted procurement as a primary area of concern for these alleged leakages. He cited instances where items procured by ECG were reportedly purchased at prices significantly above their market value. For example, an item available for one cedi on the open market might be acquired by ECG for an average of seven cedis.

This substantial price discrepancy, according to Boakye, is a direct consequence of systemic procurement issues, including the widespread use of sole sourcing. He described a scenario where private entities submitting bids are allegedly instructed by insiders within ECG to inflate their proposed prices to a specified higher amount before contracts are awarded. When questioned, Boakye confirmed that this alleged inflation is intended to facilitate the sharing of benefits among involved parties. These practices, he argued, contribute significantly to increased operational costs and overall inefficiencies within ECG.

The Executive Director of ACEP emphasized that the financial difficulties plaguing the Electricity Company of Ghana extend beyond conventional technical and commercial losses. He argued that the company's expenditure problems, deeply rooted in its procurement processes, are equally critical to its long-term sustainability. The alleged irregularities, particularly those stemming from Ghana sole sourcing practices, lead to inflated costs that severely undermine ECG’s financial health. Boakye questioned the rationale behind an item costing one cedi in the general market being procured by ECG for seven cedis, highlighting this as a significant, unaddressed problem.

These alleged Ghana public procurement irregularities are not merely isolated incidents but are presented as a systemic issue where benefits are shared among those exploiting the system. The practice of instructing private companies to artificially inflate their bids before contract awards points to a deliberate mechanism for diverting funds. Such actions directly contribute to the higher operational expenses and diminished efficiency that prevent ECG from achieving financial stability. Addressing these expenditure-related challenges, Boakye stressed, is as crucial as tackling technical and commercial losses if the company is to become sustainable.

Ben Boakye also challenged the prevailing debate surrounding the future management of ECG, particularly the focus on whether the company should remain state-owned or transition to private operators. He contended that merely transferring management to private entities would not inherently resolve the deep-seated issues confronting the utility. Instead, Boakye advocated for a concentrated effort on rectifying the specific practices that have allowed inefficiencies and alleged Ghana ECG procurement corruption to persist. He pointed out that private companies already play substantial roles in ECG's operations, including revenue collection and the maintenance of critical infrastructure like transformers and power lines.

The core of the problem, according to Boakye, lies in the operational practices rather than the ownership structure. For lawyers advising clients on public procurement in Ghana, especially with state-owned enterprises like ECG, these allegations underscore the critical need for heightened due diligence on contract terms and pricing. This is particularly pertinent for sole-sourcing arrangements, where the risk of complicity in alleged corruption or exposure to future investigations is elevated. Compliance officers must, therefore, review internal controls to ensure robust Ghana anti-corruption compliance measures are firmly in place for all engagements with Ghanaian public entities, safeguarding against involvement in such alleged irregularities.

Lawyers advising clients on public procurement in Ghana, particularly with state-owned enterprises like ECG, should heighten due diligence on contract terms and pricing, especially for sole-sourcing arrangements, to mitigate risks of complicity in alleged corruption or exposure to future investigations. Compliance officers must review internal controls to ensure robust anti-corruption measures are in place for engagements with Ghanaian public entities.

Source: Original reporting via Clara Seshie