Special prosecutor asked to investigate $ 36 million purchase of ECG electric meters

INSTEPR filed a petition with the Office of the Special Prosecutor

• The office of the special prosecutor was seized of a suspected fraudulent purchase

• This involves the purchase of some unused electricity meters by the ECG valued at $ 36 million.

• The agreement would have taken place in 2016

The Institute of Energy Policy and Research (INSTEPR) has filed a petition with the Office of the Special Prosecutor.

The petition calls for an investigation into the circumstances that led to the purchase of approximately $ 36 million of electricity meters by the Ghana Electricity Company (ECG) in 2016.

The energy think tank in a statement signed by its executive director, Kwadwo Poku, called the purchase fraudulent, hence its decision to submit the petition.

“Key people in the NDC government in 2015/16 planned this transaction to defraud the state by purchasing electricity meters for ECGs,” INSTEPR noted.

The energy think tank said the investigation was necessary to avoid the financial losses that the energy sector often incurs.

“The energy sector has become an area where the people responsible for the finances of this country seem to be siphoning millions of cedis of money from the state into private accounts,” the think tank said.

A case in point, according to INSTEPR: “We have encountered numerous questionable payments totaling more than GH ¢ 112,596,555.88 to a company called First Grace Limited between 20015 and 2016. There is also a payment of 238,633. GH ¢ 370.61 paid to 21 companies via a government agency, for which these companies have done no work or contracted, ”the statement said in part.

Meanwhile, in the think tank’s previous findings, he claimed that the Department of Energy reporting specifically to the Department of Energy through the Department of Finance in 2016 under the administration of John Dramani Mahama had paid $ 36 million to L&R Investment and Trading Company. Limited and its local partners in Ghana, Messrs. L&R Investment and First Grace Limited for the supply of single phase and three phase ECG electric meters.

The contract price for the supply of these meters which was to be undertaken in 26 weeks was US $ 39,999,566.44, according to the energy think-thank.

INTESPR said that after the contract was agreed, an advance payment of US $ 12 million was made to L&R Investments, including a letter of credit (LC) of US $ 24 million, which meant that L&R investments had to meet certain specifications and product standards before shipping the meters to Ghana.

But the company reportedly failed to manufacture the devices to specifications and standards, but still managed to ship the electric meters to Ghana.

INTESPR also claims that unused electricity meters are currently locked in a warehouse owned by ECG because they did not meet required product specifications and standards.