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PDS DISTRIBUTION DEAL OR NO, GHANA’S POWER SUPPLY WILL REMAIN STEADY, SAYS AMEWU

General News

The government has assured the public that it has put in place effective measures to ensure that the suspension of the concession agreement with Power Distribution Services (PDS) Ghana Ltd does not affect the distribution of electricity for both domestic and industrial purposes.

The government has assured the public that it has put in place effective measures to ensure that the suspension of the concession agreement with Power Distribution Services (PDS) Ghana Ltd does not affect the distribution of electricity for both domestic and industrial purposes.

 

In interviews following the announcement of the suspension, the Minister of Energy, John Peter Amewu, affirmed that immediate steps have been taken to ensure that distribution, billing and payment services continue uninterrupted.

Meanwhile, the government has urged the public and customers not to take undue advantage of the situation to interfere with distribution of electricity.

Breaches

The Minister of Information, Kojo Oppong Nkrumah, announced on Tuesday that the government, acting through the Ministry of Finance and Electricity Company of Ghana (ECG), has suspended the concession agreement with PDS Ghana Ltd with immediate effect.

He added that accordingly it has brought back ECG to resume full control of power distribution in the country.

A short statement signed by the Minister said the decision followed the detection of “fundamental and material breaches” of PDS’s obligation in the provision of payment securities (demand guarantees) for the transaction.

According to the statement, the breaches were detected upon “further due diligence” done by the government after entering into the concession agreement.

“Guarantees were key prerequisites for the lease of assets on 1st March, 2019 to secure the assets that were transferred to the concessionaire,” the release explained, adding that the government is conducting a full inquiry into the matter to establish the depth of breaches.

The statement said the outcome of the investigations will “inform the next course of action” the government will take.

Forged document?

Mr Amewu said yesterday that initial investigations conducted by the government has established that a document presented by PDS as a guarantee for the takeover of ECG was forged.

The Minister explained that even though the document showed that a company in Qatar had stood as guarantor for PDS, the management of the company told the government it had no knowledge of the document.

Speaking on Citi FM, Mr Amewu corroborated the Information Minister’s statement that the government will prosecute anyone found to have engaged in the fraudulent act.

PDS speaks

Meanwhile, PDS has issued a statement saying it has always acted and will continue to act in good faith at all times.

The company added that it will follow “due process” by complying with the terms of the transaction agreement executed between itself and ECG, on the one hand, and the Government of Ghana through the Ministry of Finance on the other.

The company further assured the Ghanaian public that it will “not rush to put out any information until it has been sufficiently substantiated, in the interest of safeguarding the transaction and the image of Ghana”.