Corruption allegations against PURC fabricated – Report

A fact-finding committee report has described as baseless and unfounded allegations of financial misappropriation leveled against the Public Utility Regulatory Commission, PURC.

The committee insists allegations of widespread corruption that have occupied media space recently were intended to incite public anger against the commission.  

The utility regulator has been in the news following media reports that over GHC400, 000.00 was transferred into the account of PURC Executive Director, Samuel Sarpong, by the Head of Finance.

The monies, according to reports, were collected in 2013 and 2015 from utility companies to fund nationwide public meetings on controversial reviews of utility tariffs.  

A senior staff of the Electricity Company of Ghana (ECG) is reported to have said part of the money was paid in cash to the PURC.

It was also reported that a software the Commission procured at the cost of GHC200, 000.00 does not work.

The Fact Finding Committee’s Report was adopted at a meeting of the Commission held on 7th March 2017.

Excerpts of the report explained that the then Head of Finance, Mr Isaac Kofi Assan advised the Executive Secretary to use his account for the transfer of the money for the Public Hearings as he could not deliver the money on time “because he was writing his professional examination that weekend”.

The Public Hearings were held in Ashanti, Brong Ahafo, Northern and Upper East Regions respectively.

Following that experience, the report said the Commission has opened bank accounts in all regions where the PURC has offices. 

Below is an extract from the Fact-finding committee’s report

RESPONSE TO ALLEGATIONS LEVELLED AGAINST THE

PUBLIC UTILITIES REGULATORY COMMISSION

PRESS STATEMENT

INTRODUCTION

The attention of the Public Utilities Regulatory Commission (PURC) has been drawn to the circulation of an anonymous document concerning certain amounts of money that have been allegedly spent unlawfully at the PURC. 

The Anonymous document was issued by a so - called “Concerned Group of Staff of PURC”. The Commission had a meeting with staff of relevant departments to inquire if anyone had knowledge of the anonymous document that was being circulated in the media. 

However, staff members denied any knowledge of the document neither did they know of any group by the name “Concerned staff of the PURC”.

In spite of the anonymity of the Document, the Commission set up a Fact Finding Committee to investigate the matter.   The Fact Finding Committee’s Report was adopted at a meeting of the Commission held on 7th March 2017.  

This Press Statement contains extracts of the Report which has been given to relevant authorities. The Press Statement addresses specific issues being discussed in the media.

TRANSFER OF MONEY INTO MR SAMUEL SARPONG’S (EXECUTIVE SECRETARY) PERSONAL ACCOUNT

With respect to this issue the Committee found that the then Head of Finance, Mr Isaac Kofi Assan advised the Executive Secretary to use his account for the transfer of the money for Public Hearings in the year 2013. 

According Mr. Isaac Kofi Assan, it was the best and most practicable way to get the money to the Public Hearing Team that was already in Kumasi for the Public Hearings in Ashanti, Brong Ahafo, Northern and Upper East Regions.

The Committee found that all levels of authorization (i.e. Directors, Managers, and Officers) duly involved in the various approval processes from request for payments to approvals, disbursements and retirements were properly done and duly accounted for.

The Committee also found that the use of the Executive Secretary’s bank account was done at the convenience of Mr Isaac Assan who could not deliver the money to Kumasi because he was writing his professional examination that weekend. 

He also disclosed that the money was cashed from the Bank late on Friday evening and could only be transported through that account considering the additional Risk of transporting the money physically.

It is important to note that, following this experience the Commission has opened Bank Accounts in all the regions where the PURC has offices.

IMPREST FOR ORGANISED LABOUR

The Committee investigated the allegation that “though Organized Labour (TUC) boycotted the 2013 Major Tariff Review Public Hearings the amount allocated was not refunded”.

The Committee found that this allegation was not true and that the program took place despite the TUC’s boycott. 

  However, the portion of the TUC impress amounting to GHS 40,000.00 was duly refunded by the disbursement officer for the function and a receipt issued by the finance department.

DAYZER GHANA MODEL SOFTWARE

The Committee found that the allegations surrounding the procurement of the Dayzer Software was incorrect. It was well established that the Dayzer Software was procured during the tenure of Mr Stephen Adu, the then Executive Secretary of the PURC, before Mr. Samuel Sarpong became the Executive Secretary.

Evidence was also provided to confirm that the Procurement of the Software went through due process and the Sole Sourcing of the Software was duly authorized by the Public Procurement Authority (PPA) in June 2012.

The Committee also found that the software had been installed in the Energy Directorate of the Commission, where it is functionally being used for the technical operations of the PURC.

CHRISTMAS HAMPERS (2012)

The allegations on the Christmas Hampers relates to the Christmas Hampers for the year 2012 before the President John Dramani Mahama in December 2013 directed all Ministries, Departments and Agencies (MDAs) to desist from using public resources for Christmas and New Year gifts by a letter from the Office of the President and signed by the Executive Secretary to the President, Dr. Raymond Atuguba.

Since this directive was issued no Christmas Hampers have been distributed by the Commission.

PROTOCOL FOR MUSLIM PARLIAMENTARIANS,

WORKSHOP ON NATURAL GAS TRANSPORTATION PRICING,

2013, 2015 PUBLIC HEARINGS, PROTOCOL, FOREIGN TRAVEL,

WORKSHOP ON AUTOMATIC ADJUSTMENT FORMULA FOR MEDIA

Regarding these transactions the Committee found that the processes and procedures were in conformity with Standard Operating Procedures of the PURC.  All levels of authorization (i.e. Directors, Managers, and Officers) duly involved in the various approval processes from request for payments to approvals, disbursements and retirements were properly done and duly accounted for.

Amounts expended were used for the purposes for which they were requested.

  In instances where procedural issues were raised, these were presented to the Audit Report Implementation Committee (ARIC) and dealt with in the Audit by the External Auditors. 

To avoid such occurrences in the future the ARIC and the External Auditors recommended the opening of Regional Accounts of the PURC to enhance financial operations which have been complied with.

CONCLUSION

The Public Utilities Regulatory Commission wishes to state that allegations that have occupied the media space for some time now are false and without merit.  Regrettably, these allegations were intended to put the image of the Commission into disrepute. 

The Commission wishes to reassure all stakeholders that it is committed to delivering on our legal mandate whilst protecting the interest of the consumer and safeguard the integrity, image and reputation of the Commission.

Ing. Dr. Emmanuel Annan- Chairman Ing., Stephen Akuoko – Member

Major Albert Don – Chebe – Member

Dr Ferdinand D. Tay – Member

Mr Daniel Owusu- Koranteng – Member

Mr Samuel Leslie Adetola – Member

Dr. Yaw Adu Gyamfi – Member

Lawyer David Ametefe – Member