The governing body of the Electricity Company of Ghana (ECG) has fired back at fines imposed on them by the Public Utilities Regulatory Commission (PURC) over its failure to deliver a load-shedding schedule.
Legal representatives for the ECG board wrote to the PURC on Wednesday, April 17, contesting the fines.
They argued that the Commission’s authority doesn’t match that of the High Court, questioning its right to impose penalties.
The legal representatives said the board members, who aren’t directly engaged in the company’s day-to-day operations, shouldn’t be individually accountable for management decisions.
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“It must also be stated that the Electricity Company of Ghana Limited as a corporate body has a legal personality that is distinct from its Board Members. This is the very foundation of Company Law. The officers of the company cannot be held liable for the acts of the company. Lifting the veil of incorporation to go after the officers of the company can only be done in exceptional cases and can only done by a court of competent jurisdiction,” part of the letter stated.
Moreso, the legal team argued that the fines were imposed without allowing the board members a chance to state their case or offer input, thus breaching the principles of natural justice.
The letter strongly emphasized that the board members reject any personal accountability for the operational decisions made by the company’s management and objected to the PURC’s actions, deeming them unjust and unacceptable.
“The Commission’s Order imposing regulatory charges on the members of the board is unlawful, null and void as same is without jurisdiction. By this Order, the Commission has unlawfully clothed itself with the powers of the High Court, and imposed a sentence on the board members, without having been given the opportunity to be heard which amounts to a breach of the rules of the natural justice,” it added.
The PURC has imposed the members of the Electricity Company of Ghana (ECG) board, who served from the start of the year until March 18, 2024, with a substantial fine of GHS5,868,000. This hefty penalty is a result of their infringement of Regulation 39 of L.I. 2413, mandating advance notice to consumers prior to any power supply interruption.
