A recent audit conducted by PricewaterhouseCoopers (PwC) on the Cash Waterfall Mechanism (CWM), a system devised for distributing electricity revenue payments, has revealed discrepancies between reported collections and actual disbursements.

The CWM was established to ensure transparency and timeliness in payments across the electricity value chain.

However, the audit findings indicate consistent differences between the declared collections and the corresponding allocations made by the Electricity Company of Ghana (ECG) when compared to the actual payments.

These inconsistencies undermine the core objective of the CWM, which is to ensure predictability and fairness in payment processes.

Additionally, the audit uncovered instances where payments were made from accounts outside the designated single collections account, contrary to a directive issued by the Ministry of Finance.

Furthermore, disbursements to non-CWM beneficiaries exceeded the allocated amount designated for ECG.

To enhance the effectiveness of the CWM, the auditors recommend improvements in billing, invoicing, and disbursement procedures, as well as better management of non-tariff revenue by ECG.

They also suggest transitioning the CWM to a technology-driven platform and implementing robust cybersecurity measures.

Moving forward, steps will be taken to retrieve missing data and engage stakeholders in discussions regarding the recommendations, with the ultimate goal of establishing a more transparent and efficient CWM system.