Finance
PwC audit uncovers irregularities in electricity revenues
An audit by PricewaterhouseCoopers on the Cash Waterfall Mechanism, CWM, a system for distributing electricity revenue payments, has identified discrepancies between reportedly two of collections and actual disbursements.
The CWM is designed to ensure transparency and timely payments throughout the electricity value chain. The auditors observed that the declared collections and corresponding allocations made by ECG were consistently different from what was actually paid.
This inconsistency defeats the purpose of the CWM, which is to ensure predictability and fairness in payments.
The auditors also identified that some payments were made from accounts outside the designated single collections account, contravening a directive by the Ministry of Finance.
Additionally, disbursements to non-CWM beneficiaries exceeded ECG’s allocated amount. To strengthen the CWM, the auditors recommend improvements in billing, invoicing, disbursement processes, and non-tariff revenue management by ECG. They also advise transitioning the CWM to a technology-based platform and implementing cybersecurity measures.
The next steps involve retrieving missing data and discussing recommendations with stakeholders to ensure a more transparent and efficient CWM.
Source: gbcghanaonline.com
