Peacefmonline.com can confirm that Government has 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.
Peacefmonline can also reveal that the Energy Commission has moved to revoke PDS’ distribution license and allow ECG to go back to work while government undertakes a full-scale enquiry.
A statement signed by the Information Minister, Kojo Oppong Nkrumah, late on Tuesday, 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 have 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 enquiry 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.
“The general public and customers are assured that this development will not interfere with the distribution of electricity services to customers,” the statement clarified.
What Really Went Wrong?
Sources say it appears PDS allegedly committed some sought of "fraud" during the agreement phase with government.
Snippets of information received indicates that following the transfer of ECG's assets and operations to PDS on the 1st of March, 2019, ECG, acting as the beneficiary of the Demand Guarantees, has subjected the Guarantees submitted by PDS to further due diligence tests.
ECG received a letter from Al Koot, dated 16 July 2019 that claims, among other things, that the officer who executed the Guarantees from Al Koot was not authorized and that the Guarantees are null and void. The letter also stated that the officer had allegedly committed "fraud".
Insider information further revealed that the alarming development resulted in meetings with officials of Ministry of Finance and ECG as well as with President Akufo-Addo.
After the meetings Government decided to crosscheck the information contained in the Disclaimer Letter by sending a Delegation of Stakeholders to Doha, Qatar, on Wednesday, 31st July 2019 to meet with officials from Al Koot.
Prior to the trip by the Government Delegation and their report, the Government, therefore, decided, as a precautionary measure, to set aside the Concession Agreement with effect from Tuesday, 30th July 2019.
Source: Peacefmonline.com/Ghana
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they would be investigated and cleared of any wrong doing... you guys should just wait and see..the jubilee house has become a clearing house.
if you dont need ameri, cancel the contract, 1d10ts, you dont know anything about energy yet you are commenting for commenting sake.. the impudence of a dying cockroach, if ameri is not needed why did your so called Amewu "a neti ewo" extended the ameri contract.. focus on your boy-boy job in Qatar and stop churning out gibberish.
GOVERNANCE IS NOT A TRIAL AND ERROR PHENOMENA. YOU HAVE A GOVERNMENT WITH OVER 150 lazy, empty headed and LOUD NOISE MINISTERS OF STATE. OVER 1500 PRESIDENTIAL STAFFERS WHO SPECIALIZED IN DUBBING INAUGURAL SPEECHES, DUBBING OF GHANA BEYOND AID DOCUMENTS FROM KENYA, IMPOTENT AND CERTIFIED BAWULIAR, INTOLERANT PRESIDENT. DO I HEAR LOUD AND EMPTY HEADED ENERGY MINISTER PETER AMEWU WHOSE PREDECESSOR AGYARKO MISLED SUPPER INCOMPETENT AND IMPOTENT NANA ADDO TO SIGN METYLENOUS AGREEMENT SAYING THAT TIME WAS NOT ON THEIR SIDE TO PERUSE AND DO DUE DILIGENT ON DOCUMENTS BROUGHT BEFORE HIM? I GUESS HE MIGHT BE SLEEPING ON HIS JOB. ENERGY MINISTRIES ALONE IS PLAGUED WITH OVER 3 DEPUTIES MINISTERS FEEDING ON YOUR TAX AND DOING PRACTICALLY LAZY JOB. I RECOMMEND TO THE ENERGY MINISTER AND HIS DEPUTIES A SEMESTER COURSE COURSE IN COMMON SENSE AND CERTIFICATE PROGRAM DUE DILIGENCE. WHAT IS THE RATIONAL FOR THE HASTE TO SIGN PDS CONTRACT WITH X MEN BARBERING SHOP OWNER? IS IT FOR A ''CHOBBOO' ? WHEN YOUR INCOMPETENT IS LEGENDARY AND THE FUNDAMENTALS OF YOUR COMPETENCY AND SKILL SET IS WEAK, FRAUDSTERS CAN EASILY PLAY ON YOUR MIND AND SUCCEED. THE SO CALLED ''SHALLOW, HOLLOW, LOUD SPOKEN,EMPTY HEAD AND INEXPERIENCE MEN AT HELM OF AFFAIRS, THIS IS THE KIND RESULTS YOU GET.
WHEN YOU INCOMPETENT IS LEGENDARY AND THE FUNDAMENTALS OF YOUR COMPETENCY AND SKILL SET IS WEAK, FRAUDSTERS CAN EASILY PLAY ON YOUR MIND AND SUCCEED. THE SO CALLED ''SHALLOW, HOLLOW, LOUD SPOKEN,EMPTY HEAD AND INEXPERIENCE MEN AT HELM OF AFFAIRS, THIS IS THE KIND RESULTS YOU GET
The Ghana President Nana Addo and the NPP gov’t have got the balls to face the Ghanaian public and do what is right. What does the moribund NDC do after signing the AMERI deal which has now committed Ghanaians to electricity generating capacity they don’t need?
At least something is working. I know yaanom (Mahamah and Co) would have acted unconcerned or perhaps not even detected anything like that. Thanks to this listening government.
It is one thing reading and it another thing understanding. In your case you and the NPP, you people read but you don't understand. That is why you can make such an incompetent quote to back your point
if you throw merits to the dogs and make it for cronies this is the embarrassment you cause. How can you give a concession to a barber
Due diligence is supposed to be done before the transfer of assets. Due diligence is thus assurance of creditworthy of the one taking over the assets. Through that, any risk could be ascertained and risk insurance can be mortgaged to secure assets worthiness. After taking over, monitoring and evaluation are done for compliance.
When it is said that you don't read you think it is an insult oooooo but it is the reality. " Following the transfer of ECGs assets and operations to PDS on the 1st of March 2019 acting as the beneficiary of the Demand Guarantees has subjected the Guarantees submitted by PDS to further due diligence test." Since the Demand Guarantees were submitted after the taking over on 1st March, 2019, no DUE DILIGENCE could have taken place BEFORE the submission of the DEMAND GUARANTEES. So where is the INCOMPETENCE?