Former Power Minister Kwabena Donkor says public companies like the Electricity Company of Ghana (ECG) must not be subject to the strict public procurement laws of the country.

His comment follows the Auditor General citing ECG for over $145 million worth of procurement breaches between 2016 and 2021.

These breaches were related to the signing of 50 contracts for the procurement of 862,750 meters and their accessories.

ECG’s failure to adhere to the Public Procurement Act led to a lack of consideration for value for money, competitiveness, and transparency in the procurement process, according to the Auditor General.

But speaking to JoyNews' Parliamentary Affairs Correspondent, the Pru East MP argued that by the operation of the companies act, ECG and other such public companies are not subject to the public procurement laws.

"The Board of directors of these public companies will have to be more active, they have set down guidelines on procurement for example and then the Minister responsible will have to approve the guidelines, one that is done, I sincerely don't think public companies have to go to the Public Procurement Authority", he argued.

He continued that "they are not public entities. Companies are limited liability entities. They are legal persona so they are not part of the Public service."

It is the view of the former Power Minister that once these entities are set up as companies and not corporations, they are different in law.

He argued that once these companies are set up like commercial entities, then they must be allowed to run as such.