Termination of PDS contract – John Jinapor advises



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Former Deputy Minister of Energy and Petroleum, John Jinapor, warned the government not to take advantage of current challenges in the energy sector to take over shares of the Ghana Electricity Company (ECG).

Speaking on Adom FM Hot issues On Wednesday, July 31, 2019, Mr. Jinapor said that he suspected some government officials of acquiring shares of the ECG after the suspension of the concession agreement with Power Distribution Services ( PDS).

Yapei-Kusawgu's legislator also called for termination of the contract because of an element of "fraud" detected in the contract, revealed by Energy Minister John Peter Amewu.

Jinapor added that if the government had listened to its warning from the beginning of the process, namely that the contract would not serve the interests of the state, the hubbub would have been improved.

"I said from the start that it was not going to help us. They did not have the financial capacity to take over and the government was lying to us, "he said.

"We [NDC] called for a warranty inquiry to authenticate it before the start of the concession, but they [NPP] changed by asking them to start before presenting the guarantee, "he told Akua Boakyewaa Yiadom on Hot problems.

John Jinapor further questioned the competence of PDS, saying that they "have had poor performance over the last five months", they have resumed the distribution of electricity provided by ECG.

Meanwhile, Ishmael Agyekumhene, executive director of the Kumasi Institute of Technology, Energy and Environment (KITE), speaking on the same program, warned against the contract's abrupt termination. avoid possible debt in judgment.

He also warned against a quick ruling as investigations are ongoing and could exonerate the PDS.

Mr. Agyekumhene, however, said that Ghanaians "should be happy that the first accidents are occurring" to correct any mistakes in the concession that would have been terrible in the future.

PDS suspension

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

In addition, the statement states: "The decision follows the detection of fundamental and substantial breaches of the PDS obligation in the provision of payment guarantees (on-demand guarantees) for the transaction that were discovered in subsequent checks .

"On-demand collateral was an essential prerequisite for leasing badets as of March 1, 2019 to secure badets transferred to the dealer. The government is currently conducting a thorough investigation into this case, the outcome of which will determine the next plan of action. "

He added, "The government has taken steps to ensure that distribution, billing and payment services continue uninterrupted. The general public and customers are badured that this development will not interfere with the distribution of electricity services to customers. "

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