We have been vindicated’ – John Jinapor on PDS agreement suspension

‘Vindication’ is how MP for Yapei Kusawgu Constituency chooses to describe how he feels following government’s decision to withdraw the power distribution deal with Power Distribution Services months after they began work.

On Tuesday, the Information Minister Kojo Oppong Nkrumah through a press release announced the retraction of a deal between government and the PDS.

Details of the release revealed that the action by government was necessitated by “the detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which have been discovered upon further due diligence”.

Members of the NDC, following the development have reacted, citing previous instances where their cautionary statements about the deal between government and PDS were completely ‘brushed off’.

It will be recalled that former Deputy Energy Minister and Minority Member of Parliament, John Jinapor in various statements declared flaws in the agreement and instances of non-compliance by PDS.

The former Minister had said that, some actions of PDS was in clear violation of the agreement it had signed with the government.

“It is curious, mind-boggling and alarming to note that PDS has so far not injected the needed financial capital as stipulated under the concession agreement”, he said.

“On the contrary”, he added, “the company has resorted to appropriating all revenues collected from Ghanaians (including expected payments) to shore up their capital requirements. This appropriation includes expected payments to Transmission and generation Companies”.



“PDS is clearly violating the Concession Agreement by refusing to release funds meant for other entities in the electricity sector as stipulated in the tariff structure. How can a company supposedly contracted to inject its own capital to improve the electricity sector turn around to depend on ECG’s already existing funds for their operations”. Mr. Jinapor further added.

Having ‘backfired’ barely 6 months after its commencement, Mr. Jinapor, speaking to Ghanaweb a day after the retraction noted how the action vindicates him.

“We made it clear to them that this concession in its state and form if you proceed with it you will crash”

This comes barely 48 hours after an announcement by the Finance Minister on the withdrawal of the “controversial” Luxury Vehicle Levy was met with chants of “we told you so” from members of the Minority side of parliament.