The Public Accounts Committee (PAC) has questioned Ghana Water Company Limited’s continued accumulation of debt despite repeated borrowing to replace ageing equipment at its treatment facilities.

The concern follows a significant rise in the company’s liabilities between 2023 and 2024, with non-current liabilities increasing by 26.7% from GH¢8.286 billion to GH¢10.497 billion.

Current liabilities also went up by 24.9%, from GH¢3.129 billion to GH¢3.908 billion, largely due to higher payables, while non-current assets increased marginally by 1.3% from GH¢10.849 billion to GH¢10.993 billion.

Management told the Committee that the expenditure was necessary to replace ageing equipment at various water treatment facilities.

However, PAC Chairperson Abena Osei Asare, during a sitting on October 7, 2026, questioned why the same explanation had repeatedly been used to justify Ghana Water’s borrowing over several years.

“From 2017 to 2024, I can count the number of loans that we’re taking on behalf of Ghana Water with the same explanation. Our equipment is 30 years old, so this is going to affect our equipment. Our equipment is this and that,” she said.

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She further raised concerns about the company’s revenue mobilisation capacity and its ability to repay loans without ultimately relying on government support.

“It’s not state-of-the-art, so we are going to use this loan for revenue collection, but revenue collection is nothing to write home about. Ghana Water ends up not being able to pay the loans, and then it sits on the back of government,” she observed.

The Committee subsequently deferred the hearing to allow the minister, the Managing Director and the deputy minister to appear together and provide further explanations on the company’s financial position.

Osei Asare said the officials would be expected to present the Committee with a clearer picture of Ghana Water’s finances and address concerns contained in the Auditor-General’s Report.

“Another time when the MD, the minister and you (the Deputy Minister) can come, and we can look at your financials properly and also look at the concerns that we have,” she stated.

The rescheduled hearing is expected to focus on Ghana Water’s growing liabilities, expenditure on equipment and its capacity to generate sufficient revenue to meet its financial obligations.

MRA/VPO

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