A forensic audit of the Electricity Company of Ghana (ECG) has uncovered GHS 303.48 million in unexplained "tax offsets," raising serious questions about financial transparency and revenue allocation within the power sector.
The PricewaterhouseCoopers (PwC) audit, covering October to December 2023, reveals that Ghana's primary electricity distributor made these substantial deductions without providing supporting documentation or clear rationale for the transactions.
Breaking down the numbers and findings According to the audit report, ECG recorded GHS 253.48 million in tax offsets in November 2023 and an additional GHS 50 million in December 2023. These deductions were made before calculating revenue available for Level B beneficiaries in the Cash Waterfall Mechanism (CWM), the system designed to ensure fair payment distribution across Ghana's energy sector.
GHS 303.48 million was made as deductions in the CWM against the net revenues after Level A IPP allocations for the two months (November 2023 and December 2023).
