The Public Accounts Committee (PAC) has rescheduled its hearing into the financial performance of Ghana Water Limited (GWL), directing the sector Minister and the company’s Managing Director to appear before the Committee.
The Committee said the postponement would give Minister Ahmed Ibrahim, MD Adam Mutawakilu and the GWL management enough time to study the concerns raised in the Auditor-General’s Report and return with relevant policy decisions and explanations.
The Auditor-General’s Report cited significant financial challenges at the company, including a decline in revenue and a sharp increase in liabilities.
GWL’s revenue fell by about GH¢4 million, from GH¢2.113 billion in 2023 to GH¢2.109 billion in 2024.
Despite the decline in revenue, the company recorded expenditure of GH¢5.167 billion in 2024, resulting in a deficit of about GH¢3.063 billion.
The company’s non-current assets increased by 1.3%, from GH¢10.849 billion in 2023 to GH¢10.993 billion in 2024, following the acquisition of additional property, plant and equipment.
Current liabilities also increased by 24.9%, from GH¢3.129 billion in 2023 to GH¢3.908 billion, largely due to higher payables.
Non-current liabilities rose by 26.7%, from GH¢8.286 billion in 2023 to GH¢10.497 billion.
Management explained that the expenditure was necessary to replace ageing equipment at various water treatment facilities.
The explanation, however, did not satisfy the Committee.
PAC Chairperson Abena Osei Asare questioned the repeated use of ageing equipment as a justification for Ghana Water’s borrowing over the 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 also raised concerns about the company’s ability to generate enough revenue to service its debts.
“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 directed that the hearing be deferred to another date to allow the Minister, the Managing Director and the Deputy Minister to appear together.
The PAC Chairperson said the Committee wanted the officials to present a clearer picture of the company’s finances and respond to the concerns raised 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.”
The rescheduled hearing is expected to give the Committee an opportunity to further scrutinise Ghana Water’s financial position, expenditure and growing liabilities.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Source link
