Exclusive: How PDS partner TG Energy has violated Ghana's tax laws for 3 consecutive years

General News of Sunday, August 4, 2019

Source: theghanareport.com

2019-08-04

Investigations conducted by The Ghana Report revealed that one of Power Distribution Services Company Limited's (PDS) partners had not filed its tax return for three consecutive years.

TG Energy Solutions Limited (28%), Santa Power Limited (13%) and GTS Power Limited (10%) are the Ghanaian companies of the PDS concession which together hold 51% of the contract shares.

Documents intercepted by Ghana indicate that TG Energy Solutions Limited, which holds a higher percentage of the stake in the agreement (28%), did not file its tax returns with the government between 2015, 2016 and 2017, in flagrant violation of the country's tax. laws.

TG Energy Solutions Company Limited with registration number: CS443522014, originally constituted on June 25, 2014 in accordance with the documents we had, did not pay a cent to the Government of Ghana before badigning the concession to PDS to manage the distribution of electricity in this country.

According to Section 79 of the Ghana Revenue Authority Act, No. 79, 2009, "Whoever fails to cooperate with the Authority to ensure that the optimal badessment and collection of revenue is an offense and

On summary conviction, a fine not exceeding five hundred units or imprisonment for a term not exceeding two years or both, and in the case of a second or subsequent offense, an additional fine of ten units of fine the offense continues after the Authority has served a written notice to the offender. "

The report on Ghana also has access to a confidential report on TG Energy Solutions as well as to GTS Power Limited with registration number: CS287612017, incorporated on November 8, 2017. The report shows how both companies can to be heard in different ways to win. Concession. The investigators in their report indicate that they suspect collusion between the two companies whose ownership structure was attributable to the same people and which should not be awarded the concession of the Ghana Electricity Company (ECG ).

The report on Ghana in the coming days will publish the confidential report dated 24 August 2018.

On July 30, 2019, the government, through the Ministry of Information, announced the suspension of an electricity distribution agreement between the Government of Ghana and the PDS. The announcement indicated that there had been breaches of the company's obligation to provide payment guarantees.

In response to the government's statement, the company stated that it has always acted in good faith and "will continue to act in good faith at all times".

Energy distribution services officially resumed GEC activities in February 2019 after winning the call for tenders to operate the electricity distribution service in the south of the country.

The company had to reverse the activities of ECG, which was struggling at the time, and make it more efficient and profitable.

Energy Minister John Peter Amewu said the government's investigations had established the counterfeit of a document submitted by PDS as guarantor of the resumption of the GEC.

Although the document says that a company in Qatar had a guarantee on the PDS, the minister stated that the management of the Qatari company had told the government that she was not aware of this document guarantee.

According to Amewu, the government will ensure that all responsible persons are guilty of the seemingly fraudulent act.

Kwabena Donkor, former Energy Minister, blamed the government for failing to exercise due diligence before handing over the state's electricity distribution service to the PDS.

According to him, those who signed the settlement agreement were neither "patriotic citizens nor irresponsible citizens".