Banks are required to freeze the accounts of PDS

General News on Friday, August 2nd, 2019

Source: citinewsroom.com

2019-08-02

The Ghana Financial Intelligence Center has written to all rural banks and savings and credit companies to immediately freeze all Power Distribution Services (PDS) accounts.

According to the FIC, the aim is to ensure that law enforcement agencies investigate the violations detected with the guarantee of the PDS concession application.

In its letter, the FIC stated that financial institutions should, however, authorize the receipt of money on the account, but must limit debits to these accounts.

In accordance with Article 47 of the Anti-Money Laundering (Anti-Money Laundering) Act 2008 (Law No. 749), you are ordered to immediately freeze all accounts managed by the energy distribution services in order to allow a law enforcement agency to conduct additional investigations. "

"Because of the peculiarity of the subject's operations, we also ask that you authorize credits and limit debits on all accounts," says a letter from FIC to financial institutions.

The letter also asked savings and credit companies and rural banks to provide an up-to-date financial statement for all PDS accounts that they manage.

In addition, provide the Center with copies of the account statement for the period March 1, 2019 to date for all accounts that you maintain. Please note for strict compliance, "added FIC in the letter.

The Ghana government on Tuesday suspended a concession agreement with PDS for electricity distribution in Ghana, immediately after the discovery of "fundamental and substantial breaches of the PDS obligation in the provision of guarantees. payment (guarantees on demand) ". "

The government subsequently announced that it had launched an in-depth investigation into the offenses and that a committee consisting of insurance investigation experts, officials from the ministries of the government, the government, the police, the police, the police, the police, and the police. Energy and Finance, as well as ECG and MIDA officials also had 30 days to complete the work. probe.

According to the Minister of Information, Kojo Oppong Nkrumah, the team is expected to Doha-Qatar as part of the investigation.

Another team, he said, will be sent to the United States to continue its dialogue with the US government through its agency, the Millennium Challenge Corporation, on development.

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.