The Public Accounts Committee (PAC) of Ghana's Parliament has rescheduled its hearing into the financial performance of Ghana Water Limited (GWL). The Committee has directed the sector Minister, Ahmed Ibrahim, and the company's Managing Director, Adam Mutawakilu, to appear before it. This decision was made to give the Minister, MD, and GWL management sufficient time to study the concerns raised in the Auditor-General's Report.
According to the Auditor-General's Report, Ghana Water Limited faces significant financial challenges. The company's revenue declined by GH¢4 million, from GH¢2.113 billion in 2023 to GH¢2.109 billion in 2024. Despite this decline, GWL recorded an expenditure of GH¢5.167 billion in 2024, resulting in a deficit of approximately GH¢3.063 billion. The company's non-current assets increased by 1.3% to GH¢10.993 billion in 2024.
The PAC Chairperson, Abena Osei Asare, expressed concerns about Ghana Water's repeated use of ageing equipment as a justification for its borrowing over the years. She questioned the company's ability to generate enough revenue to service its debts. The Committee is worried that Ghana Water's borrowing will continue to burden the government.
The rescheduled hearing will allow the Committee to further scrutinize Ghana Water's financial position, expenditure, and growing liabilities. The PAC Chairperson stated that the Committee wants the officials to present a clearer picture of the company's finances and respond to the concerns raised in the Auditor-General's Report.
Ghana Water's current liabilities increased by 24.9% to GH¢3.908 billion, largely due to higher payables. Non-current liabilities rose by 26.7% to GH¢10.497 billion. The company's management explained that the expenditure was necessary to replace ageing equipment at various water treatment facilities.
The Committee's decision to postpone the hearing was made to allow the Minister, MD, and Deputy Minister to appear together. This will enable the Committee to have a comprehensive discussion on Ghana Water's financial status and the measures being taken to address its challenges.
The rescheduled hearing is expected to provide the Committee with a better understanding of Ghana Water's financial situation and the steps being taken to address its financial challenges. The Committee aims to ensure that Ghana Water's financial management improves and that the company is able to provide efficient services to the public.
Key points
- The PAC has rescheduled its hearing into Ghana Water Limited's financial performance, demanding the appearance of Minister Ahmed Ibrahim and MD Adam Mutawakilu.
- Ghana Water Limited faces significant financial challenges, including a decline in revenue and a sharp increase in liabilities.
- The Committee aims to ensure that Ghana Water's financial management improves and that the company provides efficient services to the public.
