The Public Accounts Committee (PAC) of Ghana's Parliament has postponed a hearing on Ghana Water Limited (GWL) due to the absence of key officials, including the sector Minister and the company's Managing Director. The hearing, which was scheduled to scrutinize the financial performance of GWL, had other officers of the company present. However, the committee insisted that the key persons had to be present, leading to the postponement.
Ghana Water Limited is facing a deepening debt crisis, with concerns raised about its financial position, particularly its growing liabilities and inability to generate enough revenue to meet its obligations. According to the Auditor-General's Report, GWL's current liabilities increased by 24.9% from GH¢3.129 billion in 2023 to GH¢3.908 billion. Its non-current liabilities also went up by 26.7% from GH¢8.286 billion to GH¢10.497 billion during the same period.
The company's revenue dropped slightly from GH¢2.113 billion in 2023 to GH¢2.109 billion in 2024, representing a decline of about GH¢4 million. However, GWL's expenditure increased significantly, reaching GH¢5.167 billion in 2024, resulting in a deficit of about GH¢3.063 billion. The company's management explained that much of the expenditure was used to replace ageing equipment at various water treatment facilities.
The PAC Chairperson, Abena Osei Asare, questioned why GWL continued to rely on the age of its equipment to justify borrowing over several years. She also expressed concerns about the company's ability to generate sufficient revenue to repay loans, warning that unpaid debts could eventually become a burden on the government. The Committee is expected to further examine GWL's expenditure, revenue position, and growing liabilities when the hearing resumes.
The postponed hearing will allow GWL officials to present a clearer picture of the company's finances and respond fully to the concerns raised in the Auditor-General's Report. Minister Ahmed Ibrahim, Managing Director Adam Mutawakilu, and other GWL officials have been directed to return on another date to provide further explanations. The Committee aims to scrutinize the company's financial performance and find solutions to its debt crisis.
Ghana Water Limited's non-current assets increased by 1.3% from GH¢10.849 billion in 2023 to GH¢10.993 billion, following the acquisition of additional property, plant, and equipment. The company's management had explained that the expenditure was necessary to maintain and upgrade its facilities. However, the PAC remains concerned about the company's financial sustainability and its ability to manage its debt.
The Public Accounts Committee's decision to postpone the hearing reflects its determination to ensure that GWL's financial woes are thoroughly examined and addressed. The Committee's scrutiny of the company's finances aims to promote transparency and accountability in the management of Ghana's water sector. The hearing will resume on a later date, with the Committee expecting a more comprehensive explanation of GWL's financial situation.
Key points
- The Public Accounts Committee has postponed a hearing on Ghana Water Limited due to the absence of key officials, amid concerns over the company's growing debt and financial woes.
- Ghana Water Limited's debt crisis deepens, with current liabilities increasing by 24.9% and non-current liabilities rising by 26.7% between 2023 and 2024.
- The company's revenue dropped slightly, while expenditure increased significantly, resulting in a deficit of about GH¢3.063 billion in 2024.
