A report, detailing an exorbitant demand of GH¢ 259,819,544.97, submitted by Hubtel to the Electricity Company of Ghana (ECG) for payment.
This demand, has raised significant questions surrounding the controversial Hubtel-ECG deal.
The ECG management, has reportedly pushed back against the substantial claim. Lawyers representing ECG, reacted to Hubtel’s submission, rejecting many of the charges as outside the scope of their contract.
Following reconciliation efforts, the two parties agreed on a reduced payment of GH¢ 20 million.
The controversy, stems from a mobile application initially developed in-house by ECG, allowing customers to pay postpaid bills and purchase credit.
However, after his appointment, dismissed Managing Director, Dubik Mahama, brought Hubtel into the picture to manage and enhance the app.
Hubtel has already received $12 million to add new functionalities and takes a commission per transaction.
The payments to Hubtel some deducted from source, have been flagged by the Auditor General, amid ongoing audits.
The invoice bearing the GH¢ 259,819,544.97, cited by The Herald, dated June 13, 2023, was reportedly backdated to justify certain payments.
Insiders revealed that, the backdating followed queries raised by auditors currently scrutinizing the Hubtel deal.
The GH¢ 259 million, was broken down as follows: Design, build, service, and provision framework for new ECG PowerApp Cloud: GH¢ 24,968,167.33,
Design, build, manage, maintain, and improve PowerApp Mobile Application: GH¢ 28,586,001.77,
Integration of new payment framework with prepaid metering systems: GH¢ 62,006,087.67,
Design, build, and deploy new universal billing system: GH¢ 109,946,160.67,
Design, consult, and lead implementation of new hybrid server hosting infrastructure: GH¢ 3,868,884.43,
Design, consult, and lead implementation of new workflow management systems: GH¢ 668,484.43 and Design, consult, and lead implementation of ECG bonded cashier POS systems: GH¢ 3,546,373.83.
In September 2024, Hubtel issued a strong rebuttal to allegations of receiving $25 million for the PowerApp project.
The company, clarified that, the $25 million figure was a projected cost limit approved by ECG’s Board of Directors at the start of the project. Of this, $12 million, has been spent on modernizing ECG’s systems and developing the PowerApp.
Hubtel, also addressed misconceptions about its revenue-sharing agreement. It clarified that it charges a transaction fee of 1.95percent on its payment platform, with Hubtel’s share being 0.95percent.
In response to claims of stagnating ECG revenues, Hubtel highlighted a 210percent average monthly revenue growth since August 2022, marking the longest period of sustained growth in ECG’s history. The company, attributed this success to its efforts and the new commercial systems implemented.
The Hubtel-ECG saga continues to unfold, with questions lingering over the justification for the additional charges and the broader implications of the deal.
The Auditor General’s report and public scrutiny, may yet reveal further insights into the contentious agreement.
