Happening now at the Information Ministry is Energy Minister, Peter Amewu explaining and giving details of why government suspended its concession agreement with Power Distribution Services (PDS).
Earlier, the minister said government was unable to detect the alleged fraudulent act because they were under pressure to meet the deadline.
However, upon probing further, government realised that the document presented by PDS as a guarantee for the takeover of the Electricity Company of Ghana (ECG) was forged.
Hence the suspension of the contract with immediate effect as a precautionary measure for ECG to take over again.
Government of Ghana in the late hours of Tuesday, July 30 announced the abrogation of the contract with Power Distribution Services barely six months after the company took over from the Electricity Company of Ghana.
In a statement signed by Information Minister Kojo Oppong Nkrumah, it disclosed that “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 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 Minority reacting to this in a press conference today said government ignored several concerns raised over the deal and it must with immediate effect terminate the contract as its fraudulent.
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