ECG Board Members reject GH₵5.8m PURC fine

The board members of the Electricity Company of Ghana (ECG) have challenging a GH₵5.8 million fine levied by the Public Utilities Regulatory Commission (PURC).

The fine was imposed due to ECG’s failure to provide a consistent load-management schedule.

Represented by their legal team, the ECG board members argue that the fine improperly targets them personally rather than the corporation itself, which they assert is the appropriate subject of such regulatory actions.

The lawyers’ main contention is that PURC has overstepped its legal mandate.

They argue that the regulatory body is authorized to penalize the company as a public utility but lacks the authority to impose fines directly on its board members.

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This distinction, they point out, is critical because board members are not involved in the daily operational decisions of the company, which would be the domain of principal officers as defined under the Public Utilities Regulatory Commission Act.

Moreover, the legal team claims that the imposition of the fine violates principles of natural justice, as the board members were not given an opportunity to present their case before the fine was decided.

This, they say, constitutes a procedural flaw that invalidates the fine.

In their vigorous defense, the lawyers highlight that ECG, as a corporate entity, is separate from its individual board members.

They emphasize the foundational principle of company law which treats a corporation as a distinct legal personality.

According to them, holding board members personally liable without a court’s decision to lift the corporate veil is both unusual and inappropriate.

The controversy pivots on the interpretation of the PURC’s powers and the extent of personal liability that regulatory bodies can impose on board members of public utilities.

The legal arguments put forth suggest a significant overreach by the PURC, which, if accepted by the judiciary, could redefine the accountability framework for corporate board members in Ghana.

As this case progresses, it could potentially set a precedent on how regulatory fines are imposed and who should be held accountable in the realms of public utility management, making it a significant point of reference for corporate governance in Ghana.

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