Parliament's Public Accounts Committee has postponed its hearing on Ghana Water Limited, a state utility that supplies piped water to most of Ghana, due to a significant deficit of GH₵3.06 billion. The committee cited the need for the Water Resources Minister and the utility's managing director to appear in person to address concerns raised in the Auditor-General's Report. The report revealed that Ghana Water Limited spent GH₵5.167 billion in 2024 while collecting revenue of only GH₵2.109 billion.
The Auditor-General's Report, an annual audit of public institutions' accounts, found that Ghana Water Limited's revenue decreased slightly from GH₵2.113 billion in 2023 to GH₵2.109 billion in 2024. Despite this decline, the company's expenditure increased to GH₵5.167 billion over the same period. The audit also reported a 1.3% rise in non-current assets, which include long-term holdings such as treatment plants and equipment.
Ghana Water Limited's management attributed the heavy spending to replacing ageing equipment at various treatment facilities. However, this justification did not satisfy lawmakers, who have heard similar explanations since 2017. PAC Chairperson Abena Osei Asare expressed concerns that the company's revenue collection remains underwhelming, warning that Ghana Water risks being unable to service its loans, which could burden the government.
The Public Accounts Committee has rescheduled its hearing and directed Water Resources Minister Ahmed Ibrahim and Ghana Water Limited Managing Director Adam Mutawakilu to appear personally at the next sitting, alongside the company's Deputy Minister. The committee aims to scrutinize the company's finances, expenditure, and growing liabilities, and to respond directly to concerns raised in the Auditor-General's Report.
Ghana Water Limited is the primary supplier of piped water to households, businesses, and institutions across much of Ghana. A widening gap between what the company earns and what it spends raises questions about its ability to maintain infrastructure, service existing debts, and keep supply reliable without relying further on government support.
The Public Accounts Committee is a parliamentary body responsible for examining how public funds, including those managed by state enterprises like Ghana Water Limited, are spent and accounted for. The committee's postponement of the hearing and summoning of key officials demonstrate its commitment to ensuring transparency and accountability in the management of public funds.
A new date for the rescheduled hearing has not been announced. The committee expects Minister Ahmed Ibrahim, MD Adam Mutawakilu, and the Deputy Minister to appear together at the next sitting to present a fuller account of Ghana Water Limited's finances and respond to concerns raised in the Auditor-General's Report.
Key points
- The Public Accounts Committee has postponed its hearing on Ghana Water Limited's financial performance due to a significant deficit of GH₵3.06 billion.
- The committee has summoned Water Resources Minister Ahmed Ibrahim and Ghana Water Limited Managing Director Adam Mutawakilu to appear in person at the next sitting.
- Ghana Water Limited's revenue decreased slightly in 2024, while its expenditure increased, resulting in a significant deficit.
