Akufo-Addo’s corrupt governance has led to Ghana losing $190m electricity deal – Mahama fumes

The Flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, has criticized President Nana Addo Dankwa Akufo-Addo for the forfeiture of a $190 million agreement intended for private sector involvement under the US Millennium Compact.

He expressed his dismay upon learning of the situation, as the deal was poised to address the nation's ongoing electricity issues.

The former president attributed the loss to the corrupt governance of Akufo-Addo and Bawumia, which he believes should be denounced by the citizenry.

“It’s disheartening to learn that the $190 million we negotiated for private sector participation in electricity distribution under the US Millennium Compact has been lost due to Nana Addo and Bawumia's corrupt, ‘yenkyendi’, and cronyistic governance practices. This is unacceptable, and we deserve better as a people,” he wrote on his X page.

Mahama reiterated his commitment to working towards enhancing the efficiency of the private sector in the electricity distribution network to mitigate the power crisis.

He also pledged to investigate the Power Distribution Services (PDS) scandal thoroughly to hold the responsible parties accountable.

“As I gear up to assume the presidency in January 2025, thanks to your votes and endorsement in this year’s election, I want to assure you that I will work diligently to enhance private sector efficiency in the electricity distribution system, including metering, revenue management, and fault response.

“My administration will prioritise accountability and ensure a thorough investigation of the PDS scandal to hold those involved accountable. Let's stand together, fight against corruption and cronyism, and work towards building the Ghana we want,” he added.

About the PDS scandal

PDS is a consortium involving Meralco through Meridian Power Ventures Ltd., AEnergia SA, an Angolan firm, and three Ghanaian companies—TG Energy Solutions Ghana Ltd., Santa Power Ltd., and GTS Power Ltd.

Following controversial amendments by Vice President Dr. Mahamudu Bawumia; former Minister of Finance, Ken Ofori-Atta; and Eson Benjamin of MIDA, PDS provided an Insurance Guarantee to ECG, which was later deemed fraudulent by Alkoot, the Qatar-based Reinsurance company alleged to have issued it.

Moreover, an FTI investigative report, initiated by MIDA at the behest of the US government, revealed that PDS failed to secure the necessary shareholder equity to finance the supposed Insurance Guarantee from Alkoot. Of the $12.25 million charged by Cal Bank to PDS for the "fraudulent" Guarantee, only $1 million (8%) came from an equity contribution by Philip Ayensu of TG Energy Solutions; $7 million (57%) was covered by a loan from Cal Bank to another shareholder, Santa Baron, which was later repaid using PDS's operational cash flows.

The remaining $4.25 million (35%) was also paid from PDS's operational cash flows post-transfer date.

Experts estimate that Ghana has incurred a loss of approximately US$1.8 billion, which the NDC attributes to the greed and avarice of President Akufo-Addo and his close circle, who allegedly attempted to claim the GH¢ 20 billion assets of ECG for themselves.

Read the tweet below:

Dear fellow Ghanaians,

It’s disheartening to learn that the $190 million we negotiated for private sector participation in electricity distribution under the US Millennium Compact has been lost due to Nana Addo and Bawumia's corrupt, ‘yenkyendi’, and cronyistic governance… pic.twitter.com/HztNIHkWn9

— John Dramani Mahama (@JDMahama) May 10, 2024