The Public Accounts Committee (PAC) postponed its scheduled hearing on Ghana Water Limited’s (GWL) financial performance, demanding the appearance of the sector Minister Ahmed Ibrahim, Managing Director Adam Mutawakilu, and the Deputy Minister. The committee said the delay would allow the officials and company management to review concerns raised in the Auditor-General’s Report and prepare relevant policy responses.
The Auditor-General’s Report revealed a sharp decline in revenue and a significant rise in liabilities at GWL. Revenue fell marginally by about GH¢4 million, dropping from GH¢2.113 billion in 2023 to GH¢2.109 billion in 2024. Despite this drop, the company’s expenditure soared to GH¢5.167 billion in 2024, creating a deficit of approximately GH¢3.063 billion.
Non-current assets increased by 1.3%, from GH¢10.849 billion in 2023 to GH¢10.993 billion in 2024, attributed to new acquisitions of property, plant, and equipment. Meanwhile, current liabilities jumped 24.9% to GH¢3.908 billion, largely driven by higher payables. Non-current liabilities also rose by 26.7%, reaching GH¢10.497 billion.
GWL management justified the high expenditure as necessary to replace ageing equipment across various water treatment facilities. PAC Chairperson Abena Osei Asare expressed skepticism about this explanation. She pointed out that from 2017 to 2024, the same justification has accompanied repeated borrowing.
“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,” Osei Asare said.
The Chairperson questioned the company’s ability to generate sufficient revenue to service the growing debt. “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 added.
Following this, the committee directed that the hearing be rescheduled to a later date when all three officials—Minister Ibrahim, MD Mutawakilu, and the Deputy Minister—could appear together. Osei Asare said the committee sought a clearer picture of the company’s financial situation and answers to the Auditor-General’s concerns.
“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 aims to allow the committee to scrutinize further Ghana Water’s financial position, its growing liabilities, and the ongoing expenditure that has put the company under strain. The rising debt and dwindling revenue have raised questions about the company’s sustainability and its ability to meet financial obligations without increasing the burden on the government.
According to Joy Online.
