Why should the Millennium Challenge Corporation (MCC) allow a grace period to reconduct a tender?? They have been on this Compact for 5 years.
The goofing was identified in February 2019 when PDS could not come up with the Bank Guarantee just before the deadline of March 1st, which surprises me as the international player Meralco could easily get its banks in Philippines to Issue. So why was it left to the local shareholders to raise the guarantees - this was the 1st Red flag!
Assets were handed over in March, 2019 in a rushed manner where CPs were not met. Since April there have been to and fro discussions with MCC.
Undue influence by people close to government brought us where we are.
The audit completed over 2 months ago and it was clear that Ghana was duped in handing over the ECG assets mainly due to lack of due diligence by the people in charge of the concessionaire privatization.
There is a Ghana Government Transaction team whom the President has appointed his own lawyer to chair - this team has the most power even more than MiDA and ECG.
There is MiDA that reports to the President. There is the IFC, the adviser to MCC and MiDA.
We are where we are because government failed to take the option proposed by MCC to keep PDS contract (ie to abode by sanity of contract’s doctrine) but change the Shareholding especially of the 51% Local players - who had no proof of competence either financial or technically (to have managed something similar in complexity and magnitude) - and replace them with Ghanaian Institutional shareholder in the interim with the ultimate aim at floating all or some of the shares on the stock exchange.
Government refused!! The question is Why??
Remember Meralco is the only reason that the contract for this ECG concessionaire was awarded to the PDS consortium based on their technical and financial clout which none of the other shareholders - including the recently added AEnergia SA, which still remains a mystery in terms of ownership and why at all its in the consortium - and there is no agent to get rid of them.
Let’s put the blame squarely on Ghana! Let’s call a spade a spade!!
We simply goofed on such a serious transaction!!!
This is a reflection of how serious we take things in our beloved country Ghana - led by our Leaders whom we have placed so much Trust to do the right things.
The focus is not Ghana First, but rather what “We” get from managing the assets of the state which normally results in short changing the Citizens of Ghana and to the detriment of our economy.
Please don’t blame MCC! The rules of engagement were clear! MCC are just asking us not to take us back years!!!
Lets consider the option and lifeline given by MCC;
- Keep the PDS contracts
- change the undesired Local shareholder and replace them with institutions like SSNIT and or GIFF
- bring in known world class foreign distribution companies (Meralco has been approved) and eliminate AEnergia SA, the scarlet pimpernel in this deal.
What we lose by cancelling the PDS contract and not working a solution with MCC is not just $190m but nearly $1.7bn
- $190m from the Ghana Power Compact
- $400m for the Regional Compact
- $500m Government Budgetary Support
- $580m from the concessionaire
Restructuring of shareholders is also amendable to MCC. Re-tendering the entire transaction is not.
Government needs to reverse the termination of the transaction (not shareholders) before our economy gets bigger hits than the GHS2bn of what we just lost on the Power Compact alone.
The real Question is “Is Ghana prepared to embarrass US Govt on the international scene??”
It is coming........watch this space !!
Source: Alex Mould/ Former GNPC Boss
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This empty barrel fails to tell us the benefits of terminating this contract,he's trying hard to impress corrupt and incompetent ***barred word*** Mahama for vice presidential position.NDC is so confused that they shout both terminating and maintaining the contract at the same time.
Ghana is an interesting place. A few years ago, the NDC led a demonstration to tell the whole world that Akufo Addo was selling Ghana to America because of a so called military agreement that ended up to nothing. Today the same NDC is sad Akufo Addo has defied the Americans. Just this week Alex Mould was saying we should investigate PDS and charge government officials. Today he says we should restore PDS not because we have lost money but because American is angry with us and will not dash us money. We are really very interesting people. No wonder NPP is not giving attention to Alex Mould at all. He does not deserve even Abronye DC for a debate.
Why is the United States so keen and showing displeasure that we refused to take the so called grant? The Us DOESNT GIVE ANYTHING FOR FREE... The govt of the day did the needful by refusing oppressors rule and thats what it is..... Mr Alex Mould if u claim u know so much could you please one sen.sible thing u did when you were put in charge of TOR? none to write home about...rather all you did was to close refinery plants just so your cohorts could import refined fuel at the expense of the tax payer....u.seless man
GHANA IS DETERMINED TO GO BEYOND AID. THE GHANAIANS MUST BE CAPABLE OF MANAGING THEIR OWN AFFAIRS RATHER THAN HOLDING IN CUP IN HAND, ALWAYS KOTOWING TO THE WHIMS AND CAPRICES OF THE INIMICALS.
LOOK, OWUSU KUMI OR WHATEVER YOU CALL YOURSELF. BEFORE PEOPLE LIKE YOU KNOW DAY BREAK, THE TRAIN WOULD HAVE LEFT YOU BEHIND. YOU ARE A DAY DREAMER. THINK FAST, WAI, AND STOP THE INSULTS. IT WOULD NOT HELP YOU AT ALL, AT ALL.
YES BY THEIR FRUIT YOU REALLY KNOW HOW INCOMPETENT NANA AND BORROMIA ARE WHEN GIVEN THE OPPORTUNITY TO GOVERN. GLORY BE TO PRESIDENT KUFFOUR WHO SECURED FIRST TRANCHE OF MIDA MONEY AND HAND OVER SUCCESSFULLY TO MILLS AND MAHAMA TO COMPLETE THE CONTRACTS. JOHN DRAMATIC NKRUMAH JUNIOR SECURED THE SECOND TRANCHE. NANA AND BORROWLIAR AND THEIR COHORTS DISPLAYED MARK OF GRAVE INCOMPETENT BY FRAUUUDULENTLY ENTERED A BOTCHED DEAL WITH FRAUDUUULENT BARBER WHICH CAUSED THE NATION TO LOSE 190 MILLION DOLLARS NOW AND SUBSEQUENT 500 MILLIONS DOLLARS IN THE THIRD TRANCHE. THE ACT OF INCOMPETENCE BY THE CURRENT CROP OF NPP COHORTS LED BY NANA BORROLIAR HAS CAUSED THE NATION TO LOSE POTENTIAL 500 MILLIONS DOLLARS NOW AND FUTURE DISBURSEMENT. EVERY GHANAIAN CAN NOW ATTEST TO THE FACT THAT INCOMPETENT,GREED,SCAN AND CORRUPTION IN THE DNA OF NANA BORROWLIAR IS CAUSING GHANAIANS TO LOSE FUTURE N11 ROADS, ROADS PROJECTS. IF IS NOT A CABAL TO LOOT AND SHARE, HOW COME A CONDITION PRECEDENT WHICH SHOULD BE BANKERS GUARANTEE WATERED DOWN TO INSURANCE GUARANTEE WILL NOT BE VALIDATE BEFORE AN ASSET WILL BE HANDED OVER TO PDS. IT IS A NAKED CRIME TO USED OPERATION MONIES OF ECG TO PAY INSURANCE PREMIUM ''YOU CAN DO ALL THE PROPAGANDA ON THE POLITICAL PLATFORMS, PDS AND MITILENOUS DEAL WILL EXPOSE YOU'' ''ARE THESE THE MEN NPP IS BOOSTING ON ? NPP DESTROYED FOOTBAL(NO LEAGUE FOR 3 YRS), DESTROYED BANKS AND JOBS, CLOSED DOWN RADIO STAIONS, ENERGY SECTOR VOTE PROFESSOR KWESII BOTCHWAY OR PROFESSOR ALABI AND JUNIOR NKRUMAH(JDM)