The Public Accounts Committee (PAC) has deferred 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 at a later date.
The Committee said the postponement would give Minister Ahmed Ibrahim, Managing Director Adam Mutawakilu and the management of GWL sufficient time to study concerns raised in the Auditor-General’s Report and return with relevant policy decisions and explanations.
The Auditor-General’s Report highlighted significant financial challenges facing the company, including declining revenue and a sharp increase in its liabilities.
GWL’s revenue fell by approximately 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 rose by 24.9%, from GH¢3.129 billion in 2023 to GH¢3.908 billion, largely due to an increase in payables.
Non-current liabilities increased by 26.7%, rising from GH¢8.286 billion in 2023 to GH¢10.497 billion.
GWL management attributed the expenditure to the need to replace ageing equipment at various water treatment facilities. The explanation, however, did not satisfy members of the Committee.
PAC questions borrowing pattern
PAC Chairperson Abena Osei Asare questioned the repeated reliance on ageing equipment as justification for borrowing by Ghana Water 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 said.
She also questioned whether the company generates sufficient revenue to service its growing debt obligations.
“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.
Minister and MD to appear together
Following the concerns raised, the Committee directed that the hearing be rescheduled to a date when the sector Minister, Managing Director and Deputy Minister can appear together.
Ms Osei Asare said the Committee wanted the officials to provide a clearer picture of the company’s financial position and respond comprehensively to the issues identified 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 said.
The rescheduled hearing is expected to allow the PAC to further scrutinise Ghana Water Limited’s financial position, expenditure patterns, revenue performance and rising liabilities.
