The Electricity Company of Ghana (ECG) has begun processes to review all significant contracts, including its contract with Hubtel.
According to the Acting Managing Director, Julius Kpekpena the review forms part of a renewed effort to improve compliance and guarantee value for money in accordance with the Public Financial Management (PFM) Act.
He disclosed this during his appearance before the Public Accounts Committee of Parliament on Tuesday, October 28, 2025.
He said ECG has engaged a lawyer to evaluate all significant contracts to make sure they adhere to the legal requirements.
He revealed that the contract with Hubtel is one of the contracts under examination.
“In fact, we just engaged a lawyer to help us review all our contracts, our major contracts, and the Hubtel contract is one of them, so that we can align all our contracts to applicable law,” he stated.
He explained that ECG is required by the PFM Act to collect and settle all revenues at gross value, which means that no deductions must be made before money is transferred to ECG.
“The PFM act requires that we collect the money at Gross and that Hubtel settle us at Gross,” he said.
Mr. Kpekpena gave additional details on how Hubtel manages ECG’s digital payments.
“For Hubtel to settle us at Gross, they will need to pay mobile money. The Momo fee that MTN or Telecel will collect. Those who pay with a Visa card will need to pay those people on our behalf and then give us an invoice. Then we pay them before they go and pay the mobile money companies and the card providers.”
He indicated that under the gross settlement approach, this arrangement might force ECG to bear additional cost.
The development comes a month after ECG reduced Hubtel’s commission from 3 percent to 1.65 percent as part of broader efficiency measures.
Hubtel is a Ghanaian fintech company which manages ECG’s digital payment system — processing transactions across mobile money, card payments, and other online platforms.
The partnership is essential to the government’s quest for cashless and transparent public payments as well as ECG’s digitization initiative.
Source:Lovinghananews.com
