<<Print>>

There have been some speculations on the composition and credibility of the Ghanaian local consortium holding 51 per cent of the shares in the Power Distribution Services (PDS) Ghana Limited with some suggesting that a group of barbers at Osu in Accra are the ones behind it.

The government on Tuesday announced that it has through the Ministry of Finance and the Electricity Company of Ghana (ECG) Limited suspended the concession agreement with PDS with immediate effect.

The government explained that the decision followed the “detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which has been discovered upon further due diligence.”

There have been some suggestions that the government did not do due diligence on the shareholders and the demand guarantees they presented.

Graphic Online, therefore, set out to find out the names behind PDS and how they got the concession agreement.

Names behind PDS

Information available to Graphic Online indicates that the Ghanaian local consortium holding the 51 per cent of the shares in PDS are TG Energy Solutions Limited (TG), a lead local consortium sponsor with 18 per cent, Santa Baron Ventures Limited (Santa), a local technical lead with 13 per cent, GTS Engineering Services Limited (GTS), a local financial lead with 10 per cent and TBK Ghana Limited (TBK), a local financial sponsor also with 10 per cent.

The remaining 49 per cent shares are for two foreign companies, Manila Electric Company Limited (Meralco), a Filipino company with 30 per cent shares and Aenergia, an Angolan company with 19 per cent shares.

The two foreign companies are the Technical Lead for the Consortium and by extension PDS, Graphic Online understands.

Unified Ghanaian ownership

Meanwhile, in a letter dated March 27, 2019, signed by the Minister of Finance Mr Ken Ofori-Atta and addressed to Lawyer Akoto Ampaw, Chairman of the Negotiation Committee for the Electricity Company of Ghana (ECG) and Private Sector Participation (PSP), the Minister of Finance indicated that TG Energy Solutions' shares had increased to 28 per cent as part of efforts to secure and safeguard Ghanaian ownership of PDS.

The Finance Minister's letter explained that the move was aimed at ensuring and safeguarding Ghanaian ownership of PDS and to ensure that control of PDS was secured with Ghanaians in a "unified manner."

The letter said the Ministry of Finance requires that the Ghanaian Shareholding was consolidated and held by a single, newly incorporated, Ghanaian entity (the SPV - special purpose vehicle) in which the Initial Ghanaian Shareholders (and or any other Ghanaian investors from time to time would hold shares.

Therefore, the initial Ghanaian Shareholders would be required to transfer their respective shareholdings in PDS to the SPV, a structure which was to preserve Ghanaian control of PDS in the SPV (as opposed to three separate entities as is currently the case) and ensure that 51 per cent shares in PDS was always held by a Ghanaian entity.

From what Graphic Online gathered, per Mr Ofori-Atta's letter, Mr Akoto Ampaw was to "oversee the expeditious implementation of the structure above."

Background

In 2017, after a protracted re-negotiations with the Millennium Challenge Corporation (MCC), the original arrangements to give 80 per cent of the assets of the Electricity Company of Ghana (ECG) to foreigners were changed to a 51 per cent ownership by Ghanaians and 49 per cent to foreigners.

This new arrangement required the original foreign bidders to find a local Ghanaian consortium who was to take up the 51 per cent of their shareholding to make their bid whole.

Graphic Online gathers that Manila Electric Company Limited (Meralco) who was one of the original foreign bidders to accept the new arrangements struck an accord with Mr. Philip Asare Kwame Ayesu, a strategist and a serial entrepreneur and chairman of TG Energy Solutions to put together a strong local Ghanaian team in order to create the Meralco Consortium that would present an unassailable bid to the Millennium Development Authority (MiDA).

Mr. Ayesu is said to have recognised this challenge as a once in a lifetime opportunity to showcase the Ghanaian entrepreneurial drive and enable him to leave a lasting legacy that would prove that Ghanaians can do it.

He reportedly took up the challenge to find the Ghanaian team with the right pedigree of complementary attributes that would provide the requisite technical and financial credentials for the bid.

This, Graphic Online understands led to the formation of the local Ghanaian consortium made up of TG Energy Solutions Limited (TG), a Lead Local Consortium Sponsor with 18 per cent, Santa Baron Ventures Limited (Santa), a Local Technical Lead with 13 per cent, GTS Engineering Services Limited (GTS), a Local Financial Lead 10 per cent and TBK Ghana Limited (TBK), a Local Financial Sponsor with 10 per cent.

Ghanaians behind PDS

TG Energy Solutions Limited according to information available to Graphic Online has Mr Philip Asare Kwame Ayesu, a strategist and a serial entrepreneur as its Chairman.

He is also a partner of the Multiple Concepts Group (Charterhouse, Mediaedge and Multiple Concepts).

Mr Ayesu is also the Cofounder of GH ONE TV which was sold, SAP Investments Holding, DaddyCare founder and creator of the X MEN brand including other companies.

Mr Ayesu has over 20 years of experience in Business set ups, integrated marketing communication and branding.

“Barber”

It is his association with the X MEN brand located at East Legon in Accra, which is a men’s grooming centre which has probably fueled the speculation of barbers behind PDS.

He has no association with the barbering shop at Osu which has similarities to what the X Men located at East Legon does.

Mr Ayesu is a member of the International Advertising Association (IAA), and an associate member of the Global Marketers Network (GMN).

He is also responsible for the creative department and business head of Multiple Concepts Advertising.

Mr Ayesu according to Graphic Online’s sources has helped set up and structured some businesses and that he spearheaded campaigns for clients such as World Bank-IFC, John Hopkins University, Ghana Aids Commission, Interplast, Sikkens, UT Financial Services, Western Union, National Lottery Authority, GRA, MTN, Ideal Finance and a host of other companies in Ghana, Liberia and Sierra Leone.

Until recently, Mr Ayesu was a permanent speaker at the Annual Young Africa Leadership Initiative (YALI) programme hosted by the Ghana Institute of Management and Public Administration (GIMPA), a permanent speaker and mentor at Catholic Institute of Business and Technology (MBA class), and also the creator, writer and director of the longest-running award-winning radio ad project, Atongo.

Between 1996 and 2002, he worked as a salesperson at the radio station, Joy FM in Accra whilst he was still engaged in other entrepreneurial activities and has always had the objective of running a business to offer solutions and not to make money with the belief of offering the right solutions and satisfying the consumer as the art of making money, Graphic Online gathers.

GTS Engineering Services Limited GTS Power Limited

On the part of GTS Engineering Services Limited (GTS), which holds 13 per cent shares in PDS, Graphic Online understands it is a wholly-owned Ghanaian engineering services company that is active in the development and maintenance of energy sector infrastructure in Ghana and the West Africa sub-region.

GTS is the 100 per cent owner of GTS Power Limited, a special purpose vehicle incorporated for the MiDA bid.

GTS Engineering Services Limited and it's associate companies have been operating in Ghana and West Africa since 1984 and have provided leadership in the execution and management of various energy infrastructure projects in power generation, transmission and distribution

Santa Baron Ventures Limited /Santa Power Limited

On the part of Santa Baron with 10 per cent shares in PDS, Mr Kwabena Boateng Aidoo, said to belong to the top brass of successful millionaires in Ghana is the main principal, according to Graphic Online's sources.

Santa Power Limited is 100 per cent owned by SBV and was incorporated as a special purpose vehicle for the MiDA bid.

Mr Aidoo is said to have been doing business for over three decades mainly in the security and real estate sector.

His companies reportedly command staff strength of over 800 across the world and he is the Chief Executive Officer of Santa Baron Ventures Limited, and also owns Amalgamated Properties Limited, Apex Consulting Services Limited, PTL Solar Ghana Limited as part of his portfolio of investments.

His company, Santa Baron Ventures Limited, is said to have an estimated value of $50 million and a yearly turnover of about $6 million and has been a long-standing member of the British Chamber of Commerce.

In addition, two of Mr Aidoo’s companies, PTL Solar Ghana Limited and Apex Consulting Services Limited are said to have a combined value of over $10 million.

In the housing industry, his real estate company, Amalgamated Properties Limited is said to have an estimated value of $18 million.

He reportedly owns plush properties in prime areas of Accra, Wisconsin Avenue in Washington County, Maryland and other parts of the USA and in Saint Leonard Hill, Windsor in the United Kingdom.

In South Africa, Mr Aidoo is said to be the owner of Shani Boutique Hotel, which is located opposite the University of Pretoria, which serves high-end customers such as University Lecturers and other customers who visit the University.

He reportedly also owns several millions worth of commercial properties in South Africa, some of which are said to have been leased to various High Commissions and Embassies of foreign countries.

Mr Kwabena Boateng Aidoo engages in various social responsibility projects and benevolence but is said to have shied away from publicity in the press. He is said to be a member of the International Counter-Terrorism Group and Lions Club International.