Public Accounts Committee defers Ghana Water Limited hearing over GH₵3bn deficit

The Public Accounts Committee (PAC) of Parliament has deferred a scheduled hearing regarding the financial performance of Ghana Water Limited (GWL). The decision to postpone the session was made to ensure the presence of both the sector Minister and the Managing Director of the utility company, who were absent during the initial proceedings. The committee emphasized that the gravity of the financial issues currently facing the company necessitates the direct involvement and accountability of its top leadership.

Evidence presented to the committee highlighted a significant deterioration in the utility provider’s financial health over the last fiscal year. While GWL reported a revenue of GH‡2.113 billion in 2023, this figure saw a slight decline to GH‡2.109 billion in 2024. However, the most pressing concern for lawmakers is the sharp increase in expenditure, which resulted in a total deficit of GH‡3.063 billion for the 2024 financial year. Committee members expressed deep alarm over these escalating liabilities and the general trajectory of the company's fiscal management.

During the session, the committee scrutinized the company’s justification for continuous borrowing. Lawmakers specifically questioned the strategy of taking on additional debt to manage aging equipment and infrastructure, seeking clarity on how such loans would be serviced or repaid given the widening deficit. The PAC indicated that it requires a comprehensive briefing on the company’s turnaround strategy and its plans to mitigate the mounting debt crisis that potentially threatens the sustainability of water services across the country.

The hearing has been rescheduled to a later date, with the PAC formally directing the sector Minister and the Managing Director to appear in person to provide the necessary clarifications. This scrutiny comes as the administration under President John Mahama faces increasing pressure to improve the efficiency and financial viability of state-owned enterprises and utility providers.