Contrary to claims that proper due diligence was not followed in the Electricity Company of Ghana (ECG) and Power Distribution Services (PDS) deal, the Millennium Development Authority (MiDA) has argued that each step of the transaction process was subjected to careful scrutiny and various stakeholder approvals.MiDA made this known in a statement issued on Thursday, August 8, 2019, explaining that the scrutiny involved several documents submitted as requirements for the transaction process.
According to the statement, “in line with best practice in International Business Transactions, all documents submitted as part of the transaction were accepted on the basis of good faith and the presumption in law as to their validity.”
The statement noted that “While the current development is an unfortunate setback to the progress of the Concession, MiDA wishes to assure the public that it welcomes investigations into this matter.”
It assured the public that it would continue to work transparently and with a high level of integrity to achieve results in the best interest of Ghana in order to sustain the goodwill and prospects our country derives from the implementation of the Millennium Challenge Account Program.
MiDA advised the public to be circumspect in drawing conclusions not supported by facts and evidence while investigations are ongoing.
Government had on Tuesday, July 30, 2019, announced the suspension of the power concession agreement in a statement signed by Mr. Oppong Nkrumah.
An investigation was launched into the scandal and later Government announced that it will complete its full scale inquiry into detected breaches of the power concession agreement with the PDS within 30-days.
Information Minister, Kojo Oppong Nkrumah made the announcement on Thursday, August 1, 2019, in Accra, two days after the deal was suspended.
The statement had indicated that the suspension followed the detection of fundamental and material breaches of PDS’ obligation in the provision of the 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 statement said.