Ghana PAC: Ghana Water Limited Financial Hearing Postponed, Officials Summoned

• The Public Accounts Committee (PAC) has postponed a hearing for Ghana Water Limited (GWL), demanding the presence of its Minister and Managing Director.
• The Auditor-General's Report revealed GWL's revenue declined by GH¢4 million in 2024, leading to a GH¢3.063 billion deficit.
• GWL's liabilities significantly increased in 2024, with current liabilities up 24.9% and non-current liabilities up 26.7%.
• The PAC Chairperson criticized GWL's repeated use of "ageing equipment" as a justification for borrowing, noting the company's inability to service its debts.
• The rescheduled hearing aims to secure a clearer financial picture and address concerns from the Auditor-General's Report.

The Public Accounts Committee's decision to reschedule the Ghana Water Limited PAC financial hearing and demand the presence of senior leadership signals a heightened era of parliamentary scrutiny over the financial management of state-owned enterprises in Ghana.

The Public Accounts Committee (PAC) has postponed its scheduled review of Ghana Water Limited's (GWL) financial performance, issuing a directive for key officials to appear at a future session. This decision by the parliamentary body, announced on October 7, 2026, mandates the presence of Minister for Local Government, Chieftaincy, and Religious Affairs, Ahmed Ibrahim and GWL's Acting Managing Director, Adam Mutawakilu. The Committee also expects the Deputy Minister to attend the rescheduled Ghana Water Limited PAC financial hearing.

The postponement aims to provide the summoned officials and GWL management with ample time to thoroughly examine the concerns articulated in the Auditor-General’s Report. The PAC expects them to return prepared with comprehensive explanations and concrete policy decisions addressing the identified issues. This move underscores the Committee's commitment to rigorous oversight of state-owned enterprises, particularly concerning their financial health and management.

The Auditor-General’s Report highlighted significant financial challenges plaguing Ghana Water Limited, painting a concerning picture of its fiscal stability. The report detailed a notable decline in revenue, which decreased by approximately GH¢4 million, falling from GH¢2.113 billion in 2023 to GH¢2.109 billion in 2024. This revenue contraction occurred despite a substantial expenditure of GH¢5.167 billion recorded in 2024, culminating in a deficit of around GH¢3.063 billion for the year.

Further analysis of GWL's financial statements revealed a mixed trend in its asset and liability profiles. While non-current assets saw a modest increase of 1.3%, rising from GH¢10.849 billion in 2023 to GH¢10.993 billion in 2024, primarily due to the acquisition of additional property, plant, and equipment, the company's liabilities surged. Current liabilities escalated by 24.9%, from GH¢3.129 billion in 2023 to GH¢3.908 billion, largely attributed to higher payables. Concurrently, non-current liabilities experienced a significant jump of 26.7%, increasing from GH¢8.286 billion in 2023 to GH¢10.497 billion, adding to the Ghana Water debt and liabilities burden.

Ghana Water Limited's management attempted to explain the substantial expenditure by citing the necessity to replace ageing equipment across various water treatment facilities. However, this explanation failed to satisfy the Public Accounts Committee, which expressed deep skepticism regarding the recurring justification.

PAC Chairperson Abena Osei Asare voiced strong concerns, pointing out the consistent use of "ageing equipment" as a rationale for GWL's borrowing over an extended period, specifically from 2017 to 2024. She highlighted that despite numerous loans taken with this explanation, the company's ability to generate sufficient revenue to service its debts remains questionable. The Chairperson observed that GWL frequently struggles to repay these loans, ultimately shifting the financial burden onto the government, thereby impacting Ghana SOE financial accountability.

The Public Accounts Committee's decision to reschedule the Ghana Water Limited PAC financial hearing and demand the presence of senior leadership signals a heightened era of parliamentary scrutiny over the financial management of state-owned enterprises in Ghana. The Committee's explicit desire for the Minister, Managing Director, and Deputy Minister to appear together underscores its intent to obtain a comprehensive and unambiguous understanding of GWL's financial position.

This development indicates increased accountability risks for executives and board members of such entities. The rescheduled hearing is anticipated to provide the Committee with a crucial opportunity to delve deeper into GWL's financial performance, scrutinize its expenditure patterns, and address the growing liabilities detailed in the GWL Auditor-General's Report. The focus remains on ensuring transparency and responsible stewardship of public resources within Ghana Water.

This development signals heightened parliamentary scrutiny over the financial management of state-owned enterprises in Ghana, indicating increased accountability risks for executives and board members of such entities. Lawyers advising SOEs or entities transacting with them should monitor these oversight trends for potential compliance exposures and governance implications.

Source: Reporting by James Kwesi Avedzi