Fidelity Bank reportedly sues Bright Simons over ‘sweetened ECG FX deal’ claims

Fidelity Bank has reportedly taken legal action and sue Bright Simons, the Vice President of IMANI Africa, following his allegations concerning the Electricity Company of Ghana (ECG). Simons accused ECG of engaging in preferential exchange rate transactions with the bank, which allegedly cost the Ghanaian electricity utility an approximate GHC80 million.

This revelation was initially brought to light by Ben Boakye, the Executive Director for the Africa Centre for Energy Policy (ACEP), through a post on the social media platform X, citing Simons’ legal representatives.

In a subsequent confirmation via Twitter, Simons acknowledged the lawsuit but mentioned that he had not yet been officially served.

His tweet, “Yes, we await service,” indicates both his awareness of the legal proceedings and his preparedness to substantiate his claims in court.

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Bright Simons has positioned himself as ready to defend his statements, emphasizing the impact of such financial decisions on Ghanaians, particularly in relation to the erratic power supply, commonly referred to as “dumsor.”

He attributes these power disruptions to what he perceives as financial mismanagement within ECG, vowing to investigate and challenge practices that contribute to such inefficiencies.

In his defense, Bright Simons asserts the importance of scrutinizing ECG’s foreign exchange dealings, especially when these transactions seem to diverge significantly from market rates, thereby incurring substantial losses.

Ben Boakye’s detailed allegations suggest that ECG procured US dollars at a rate of GHC13.95 each, a rate considerably higher than the prevailing market rate.

This discrepancy reportedly resulted in an exchange loss exceeding GHC80 million in a single month, based on the purchase of $43 million at the inflated rate.

The heart of the controversy lies in the significant gap between the rate ECG is accused of paying for dollars and the market rate. In October 2023, the exchange rate was reportedly below GHC11.5 to the dollar for commercial banks.

However, ECG’s transactions were allegedly conducted at a much higher rate, leading to concerns about the utility’s financial management and its understanding of the market.

This lawsuit not only highlights the potential financial repercussions of the alleged exchange rate deals but also brings to the fore the broader implications of such actions on public utilities’ operational efficiency and financial health.

The legal battle between Fidelity Bank and Bright Simons is set to unfold in the public eye, offering a rare glimpse into the complexities of financial management within state-controlled entities and the scrutiny from watchdogs and activists committed to safeguarding public interest.

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