We will complete analysis of PDS concession anomalies within 30 days – Gov't

General News on Friday, August 2nd, 2019

Source: citinewsroom.com

2019-08-02

The government has announced that it will take 30 days to fully investigate the violations detected in the Power Distribution Services (PDS) contract.

The Minister of Information, Kojo Oppong Nkrumah, said at a press conference that the government had set up a team of insurance survey experts, officials from Energy and Finance, as well as officials from the ECG and MIDA. material.

The minister said the purpose of the investigation was to determine the nature of the offenses and to advise on the next steps suggested.

"The large-scale investigation into detected violations has begun and should be completed within 30 days."

"D here Tuesday, the team is expected to Doha-Qatar as part of the investigation. All interested parties are cooperating in the investigation at this stage, "he said.

The government of Ghana decided Tuesday to suspend a deal with PDS for electricity distribution in Ghana, immediately after discovering "fundamental and substantial breaches of PDS's obligation to provide payment guarantees. (guaranteed to). "

The details of the alleged violation revealed that the guarantee of the PDS was irregular.

Kojo Oppong Nkrumah revealed that another government team has been tasked to continue its dialogue with the US government through its agency, the Millennium Challenge Corporation, which is responsible for development.

"This commitment relates to possible next steps after the survey and information sharing channels as part of this investigation. This team should also visit the United States, possibly next week, as part of their commitment, "he added.

The information minister said the latest efforts to ensure a smooth transition between ECG and PDS officials are proceeding smoothly.

Kojo Oppong Nkrumah reiterated that the violation had been detected by the Ghanaian authorities as a result of "due diligence" on the part of the Ghanaian authorities.

Mr. Nkrumah further badured that the government would inform all stakeholders of the results of the investigation and proceed in accordance with the law and the terms of the agreement, in the perspective of the final resolution of the problem.

ECG succeeds PDS

At the same time, the Energy Commission announced the appointment of the Ghana Electricity Company (ECG) as the interim operator responsible for the management and operation of the electricity sales in the country.

In a statement, the Commission said the decision was based on reducing the validity of PDS's licenses because its on-demand warranties were declared null and void, among other recent developments regarding PDS's badumption of sales. of electricity in Ghana.

Below is the complete statement read by the Minister of Information on Thursday:

PRESS KIT OF THE MINISTER – 1 AUGUST 2019

PDS SUSPENSION UPDATE

Reference to the press statement issued by the Ministry of Information on July 30, 2019 regarding the suspension of the concession agreement between the Government of Ghana and the PDS, the Government updates the Ghanaian public as follows:

1. The large-scale investigation of detected violations has begun and should be completed within 30 days. The survey team includes insurance survey experts, officials from the Ministries of Energy and Finance as well as ECG and MIDA officials. The investigation will determine the nature of the violations and give advice on the next steps suggested. On Tuesday, the team is expected to DOHA-Qatar as part of the investigation. All interested parties cooperate in the investigation at this stage.

2. A second team was tasked to continue its engagement with the US government through its agency, the Millennium Challenge Corporation. This commitment concerns possible next steps after the survey and information sharing channels as part of this investigation. This team should also visit the United States, possibly next week, as part of their commitment.

3. The latest efforts to ensure a smooth transition between ECG and PDS officials are proceeding smoothly.

4. We reiterate that this violation has been discovered by the Ghanaian authorities with due diligence, through the ECG and with the support of state agencies.

A. For the avoidance of doubt, the provision of the payment guarantee has always been a prerequisite and has never been replaced by a later condition speculated by certain persons.

B. The initial initial diligence conducted by the transaction advisors found no anomalies.

C. The second-level controls (this time led by the Ghanaian side) resulted in an Al-Koot response confirming the guarantee.

D. This is a third-level control performed by the Ghanaian side that has detected anomalies within Al-Koot, triggering a fourth-level control.

E. The fourth-level check was to send a first team from Ghana's mission to Qatar to engage with Al-Koot officials for verification purposes. This fourth level again proved the anomalies and suggested an unfortunate action that is now the subject of a large-scale investigation.

5. The Government will inform all stakeholders of the results of the investigation and will proceed in accordance with the law and the terms of the agreement, in the perspective of the final resolution of this case.