Finance expert Solomon Osei Fosu has raised serious concerns over the Electricity Company of Ghana’s (ECG) massive budget overrun, describing it as a clear reflection of weak financial controls and poor governance within the country’s state-owned enterprises. Speaking on Focus 94.3 FM’s Teknokrat Show on October 29, 2025, Mr. Osei Fosu said ECG’s expenditure, which reportedly exceeds its approved budget by nearly double, exposes deeper financial weaknesses in the system.
“From a finance perspective, spending almost 190 million Ghana cedis without approval is a very serious concern. It raises questions about internal financial controls, state governance, and accountability,” he stated.
He explained that the issue points to a lack of effective budgeting control and financial oversight. If left unchecked, he warned, the culture of financial indiscipline would continue to harm Ghana’s economy. According to him, although Ghana already has frameworks such as the Public Financial Management Act (Act 921) and the Financial Administration Act to monitor public spending, these laws are not being properly enforced.
“We have the laws, but enforcement is weak. The Auditor-General and the Public Accounts Committee can only do so much if institutions fail to comply,” he added.
Mr. Osei Fosu cautioned that ECG’s financial lapses could have ripple effects on the entire economy including higher electricity tariffs, delayed power generation, and potential government bailouts. He also questioned ECG’s profitability, attributing its financial struggles to poor management and unpaid obligations to key institutions such as the Ghana Revenue Authority (GRA).
While some have suggested privatization as a solution, the finance expert disagreed, stressing that the root of the problem lies in weak internal systems. “Privatization is not the answer.
If the system itself is not fixed, replacing people will not change anything,” he said. He concluded by calling for stronger governance, transparency, and accountability across all state-owned enterprises.
“There should be independent oversight, robust internal controls, and result-oriented management to ensure financial discipline. If Ghana strengthens its systems, the nation will thrive but without that, financial indiscipline will continue to be a recurring problem,” he emphasized.