Explain PDS contract termination – Group to government

The Government of Ghana owes Ghanaians an explanation for the cancelation of the electricity deal with the Power Distribution Service (PDS) in October 2019, the Governance Watch Ghana, has said.

The PDS deal was cancelled in October 2019.

Speaking at the Ministers Press Briefing, the Information Minister, Kojo Oppong Nkrumah stated that,” The contract has been canceled by the government after thorough investigations and advised into the matter.”

According to him, the government and the USA expressed disappointment that’s equal agreement was not met on the issue but says it was in Ghana’s best interest to terminate the contract.

But Governance Watch Ghana in a statement issued on Monday, 9 March 2020 and signed by Stephen Kwabena Attuh, Executive Director, said : “Government may have forgotten it still has obligations towards the Ghanaian public on the matter of Power Distribution Services (PDS) on the state of the loss that has accrued to Ghana following the withdrawal of the US$190 million outstanding obligation on the US Government under Compact II of the Millennium Challenge Corporation that was aimed at putting the power distribution sector in shape and to improve on its efficiency.

“PDS had operated from the 1st of March, 2019 until July 30, 2019 when government officially announced its suspension following what government said were “material breaches”. Before the release of this statement, the Minister of Energy, John Peter Amewu described the PDS documentations leading to their takeover of the Electricity Company of Ghana (ECG) as fraudulent, and proceeded to state that fraud vitiates contract.

“At about the 9th of August 2019, following the few days of suspension, PDS was handed back ECG to operate. This operation was enforced until about the 23rd day of October that ECG was finally directed by the government to take over the operations of PDS with the PDS deal finally terminated.

“For about 73 days, after government found reasons to reinstate PDS, the operations of ECG were in their hands. Government appears to have gone to bed finally after the 23rd October 2019 termination of the PDS deal.”