In-depth investigation of the PDS contract – US Embassy urging the government

General News of Sunday, August 4, 2019

Source: Graphic.com.gh

2019-08-04

The Embbady of the United States of America (USA) in Ghana has urged the government to conduct a thorough forensic audit of fraud allegations relating to its contract with Power Distribution Services (PDS).

The United States believes that this decision will help to establish all the facts surrounding the contract.

The appeal was contained in an email from the press attaché of the US Embbady in Accra, Ms. Naomi Mattos, yesterday in response to inquiries from Daily Graphic regarding the suspension of the PDS contract by the government and its impact on the Compact II.

"The US government is strongly encouraging the Government of Ghana to conduct a thorough forensic audit of fraud allegations to fully establish the facts.

"It is only then that all parties concerned will be able to make a transparent and evidence-based decision in the best interest of the citizens of Ghana," she said.

Ms. Mattos added that the US interest lies in a transparent and well-managed transaction that meets international standards for private sector participation, investment and operation.

"The US government expects the Millennium Development Authority (MiDA), the PDS and the Government of Ghana to continue working together to implement the bold solutions and partnership of the MCC Pact that have been encouraged to improve. the reliability of the country's electricity grid and improve the lives of millions of Ghanaians, "Ms Mattos said in her e-mail.

Compact II

Ms. Mattos recalled the context of the contract that has been the subject of controversy since the beginning of the week. "The Ghana Power Compact Millennium Compact for Ghana (MCC) was signed in 2014 and represents a $ 498 million investment in the transformation of the country's energy sector through private sector participation and political reforms. and key institutions that will provide Ghanaian power with more reliable and affordable energy. people.

According to estimates, the MCC electricity pact in Ghana will benefit about 9.7 million Ghanaians over the next 20 years.

She further explained that the concession of the Ghana Electricity Company Ltd (ECG) was aimed at improving the performance of Ghana's main electricity distribution service, without changing the fact that it was a strategic badet for the country. Ghanaian people.

"Ghanaians will continue to hold ECG and its badets, while Ghanaian shareholders will have a majority stake in the concession program throughout its life," said Mattos.

On July 30, 2019, the government, through the Ministry of Information, suspended the GEC's 20-year concession.

Ms. Mattos said: "We believe, with the agreement of our partners in the Government of Ghana, that private sector involvement is essential to restoring the financial health of Ghana's energy sector. The Government of Ghana has alleged "substantial breaches" of its agreement with Ghana Limited (PDS) as the reason for the suspension. "