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General News Thu, 1 Aug 2019

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PDS Suspension: Was Ken Ofori-Atta asleep? - Dr Kwabena Donkor asks

With the sudden wake of the Power Distribution Service debacle, former Minister of Energy and Petroleum in the Mahama administration, Dr Kwabena Donkor has descended heavily on the Finance Ministry and questioned the Minister of Finance, Mr Ken Ofori-Atta if he was sleeping when signing the contract with the PDS.

Dr Donkor who is also a Member of Mines and Energy Committee in Parliament and Member of Parliament for the Pru East Constituency has accused the Minister for not doing proper due diligence before bringing finality to the agreement with the PDS.

According to him in an interview with host of “Maakye” Morning Show on Accra based radio station Hot 93.9FM, Isaac Boamah Darko today, the action of the Finance Minister has brought shame and disgrace to the entire nation and therefore is calling for a public enquiry to investigate all issues surrounding suspension of the contract.

Last Tuesday, government through the Minister of Finance in the Mid Year Budget Review statement hinted the withdrawal of license of the Power Distribution Service for some material breaches of the concession agreement with immediate effect.

The PDS in a release to the media has stated readiness to undergo all processes to unravel the veracity and crux of the matter.

Background



The Electrical Company of Ghana (ECG) has temporarily assumed operations as Ghana’s power distribution company after Power Distribution Service’s (PDS) concession agreement was suspended.

The Energy Commission released a statement announcing its appointment of ECG on an interim basis because the agreement between Ghana and PDS had become “impaired.”

The commission noted in the statement that the demand guarantees submitted by PDS to ECG have been “disavowed.”

The commission has directed PDS to facilitate an easy transition.

“In consequence of the above, PDS is to facilitate and provide ECG with the needed access to all billing systems, metering operations, payment accounts required for the effective operation of the retail sales licence.”

The government in a statement on Tuesday announced that PDS’ concession agreement was suspended after the government discovered some breaches in the company’s obligation in the provision of payment securities.

PDS responded to the government’s statement saying it had always acted in good faith and “will continue to act in good faith at all times.

Source: Daniel Oduro-Mensah

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