Government, on Tuesday, suspended its concession agreement with the Power Distribution Services (PDS). This means the Electricity Company of Ghana (ECG) is back in full control of electricity matters.
A statement signed by the Information Minister, Kojo Oppong Nkrumah, disclosed that the decision was taken after government detected “fundamental and material breaches of PDS’s obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which has been discovered upon further due diligence.”
According to the statement, “the Demand Guarantees were key prerequisites for the lease of assets on 1st March 2019 to secure the assets that were transferred to the concessionaire.
“The government is conducting a full inquiry into the matter, and the outcome will inform the next course of action. Government has taken steps to ensure distribution, billing and payment services continue uninterrupted,” the statement added.
According to a statement signed by the Chief Executive Officer of PDS and sighted by Peacefmonline.com on their website, it has taken note of the statement issued by Government though the Ministry of Information (MoI) on behalf of the Ministry of Finance (MoF) acting for and on behalf of Government of Ghana (GoG) and Electricity Company of Ghana (ECG).
PDS wishes to state for the record that it has always acted and will continue to act in good faith at all times.
"PDS will go through due process by complying with the terms of Transaction Agreements executed between it and ECG on one hand and GoG through MoF on the other hand," the statement said.
Read below full statement from PDS.