Samuel Dubik Mahama, the former Managing Director of the Electricity Company of Ghana (ECG), has defended the utility company’s decision to operate with 84 bank accounts, explaining that it is a strategic approach to ensure efficient revenue collection and operational effectiveness.
Addressing concerns raised in the recent ECG audit report, Mahama clarified that while ECG maintains multiple accounts across its operational districts, all revenue collected is consolidated into a single settlement account at the end of each day.
“ECG has accounts in all areas that collect revenue, but they are all swept into a single collection account. ECG has one settlement account, but if you reduce the collection accounts, operations will become extremely difficult,” he explained.
He emphasized that the use of multiple accounts is not arbitrary but a necessity due to the company’s vast operational reach. With over 95 districts under ECG’s jurisdiction, Mahama noted that maintaining bank accounts in these areas is crucial for seamless transactions, including sending funds for local operations.
“You cannot use a single bank account in Accra to collect revenue in Asankragwa. Each district needs an account to facilitate transactions,” he stated.
Mahama also highlighted the role of financial technology in ensuring accountability, pointing to the Ghana Integrated Banking System (GIBS) and the Real-Time Gross Settlement (RTGS) system of the Bank of Ghana. These platforms, he explained, enable the automatic transfer of funds from the various collection accounts into the central settlement account by the close of each business day.
“Thanks to the GIBS platform and RTGS, all funds collected are transferred into one account at the end of the day, minimizing risks and improving efficiency,” he said.
Rejecting the idea of consolidating revenue collection into a single account, Mahama warned that doing so would pose a significant concentration risk.
“ECG cannot use just one bank account to collect revenue. That would be a major risk, and no business operates that way,” he stressed.
He further revealed that ECG requires approximately GHS 600 million daily to run efficiently, underscoring the importance of a well-structured financial system to support its operations.
