Between 2021 and 2022, the Electricity Company of Ghana Limited (ECG) lost over twelve billion Ghana
Cedis. In 2022 alone, the company made losses of GH¢10,209,475,000!
During all this time, the man chosen by Manhyia to be the Running Mate to the Flag Bearer of the New
Patriotic Party (NPP), was the Minister of Energy of Ghana, and had direct supervisory authority over
ECG.
This is according to the report of the Auditor General (Report of the Auditor-General on the public
accounts of Ghana-Public Boards, Corporations and other Statutory Institutions for the period ended 31
December, 2023). Introduction 299. This report relates to the audited financial statements of the
Electricity Company of Ghana (ECG) for the year ended 31 December 2022.
At paragraph 300 of the report, the Auditor-General, under ‘Financial Performance’, thus;
“The Company ended the year with a loss of GH¢10,209,475,000 as compared with a loss of
GH¢1,913,800,000 recorded in 2021, representing a deterioration of 433.5% in its financial
performance. The details of the Company’s performance indicators for the year are presented in table
13.”
Interestingly, in the same period that the company was making humonguous losses, it was also
witnessing increasing revenue and income.
The Auditor-General reports at paragraph 301;
“Total income increased by 24.1% to GH¢15,025,135,000 in 2022 from GH¢12,104,402,000 in 2021 and
this was largely due to the increases in internally generated funds and government grants. The grants
were payments made to power producing companies by Government of Ghana on behalf of Electricity
Company of Ghana.
302. Total expenditure increased significantly by 80.0% to GH¢25,234,610,000 in 2022 from
GH¢14,018,202,000 in 2021 mainly due to increases in direct cost and foreign exchange losses. The
increase in direct cost was primarily attributed to increases in the cost of power purchased and
transmission cost.
Financial Position
303. The summary of the company’s financial position as at 31 December 2022 is presented in table 14.
304. Non-current assets improved by 45.6% to GH¢32,713,987,000 in 2022 from GH¢22,461,600,000 in
2021 and this was due to revaluation and additional procurement of property, plant and equipment.
305. Current assets also increased by 23.1% to GH¢10,142,633,000 in 2022 from GH¢8,241,749,000 in
2021 mainly due to an increase in trade and other receivables.
306. Current liabilities increased by 66.3% to GH¢29,432,727,000 in 2022 from GH¢17,698,082,000 in
2021 and this was largely attributed to an increase in trade and other payables.
307. Non-current liabilities increased by 16.4% to GH¢6,366,559,000 in 2022 from GH¢5,468,275,000 in
2021.
308. The current ratio declined to 0.3:1 in 2022 (2021: 0.5:1), indicating that the company would still not
be capable of meeting its short-term financial obligations.
