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General News Wed, 31 Jul 2019

We’ve acted in good faith in execution of power concession deal – PDS

Power Distribution Service (PDS) has denied wrongdoing in its concession agreement with the government through the Ministry of Finance.

The company, in a statement following government announcement of an immediate suspension of the deal owing to the discover of some improper actions by PDS said the company “wishes to state for the record that it has always acted and will continue to act in good faith at all times.”

A statement by the Information minister Kojo Oppong Nkrumah Tuesday night said the decision takes immediate effect.

“The Government of Ghana through the Ministry of Finance and the Electricity Company of Ghana (ECG) Ltd. has suspended the concession agreement with Power Distribution Services (PDS) Ghana Limited with immediate effect”.

The statement further said: “The decision follows 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.

“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”.

It added: “Government has taken steps to ensure distribution, billing and payment services continue uninterrupted. The general public and customers are assured that this development will not interfere with the distribution of electricity services to customers”.

Source: citinewsroom.com