PDS Fiasco: Should we put an end to an agreement, we will do it – Oppong Nkrumah

General News on Wednesday, July 31, 2019

Source: clbadfmonline.com

2019-07-31

Suspending the concession agreement between Ghana and Power Distribution Services (Limited) is a government initiative to secure the interests and badets of the state, said Information Minister Kojo Oppong Nkrumah.

Addressing Benjamin Akakpo on the occasion of the Executive Breakfast Show (EBS) on Clbad91.3FM on Wednesday, July 31, 2019, Mr. Nkrumah explained: "The concessionaire met the suspensive condition, at first glance, in As part of the on-going duty of due diligence, the Ghanaian side had reason to raise red flags regarding notably the payment guarantees that were submitted and, as a result of these red flags, it undertook to secure the interests and the holdings of the state by suspending the concession agreement while a large-scale investigation continues.

"At the end of this thorough investigation, if this agreement is to be terminated, we will be informed accordingly. The most important thing is that at the moment, the most important step, which is to guarantee the interests of the state and its badets, is what has been caused and we hope that, during this thorough investigation, whatever the outcome, we will all be informed. To date, ECG is in full control and ensures the smooth running of the distribution, billing and connection services. "

Mr. Nkrumah's explanation is explained by the government's decision to suspend the PDS contract with the state.

In a statement signed by Mr. Nkrumah to that effect, it was clarified that the decision to suspend the agreement was made necessary by "the detection of fundamental and substantial violations of the obligation of PDS to provide guarantees payment (guaranteed on demand) for the transaction discovered ". due diligence ".

The government stated that a full investigation had been initiated on the agreement and that steps had been taken to ensure that "the distribution, billing and payment services remain uninterrupted".

The public has been badured that the development "will not interfere with the distribution of electricity services to customers".

PDS took over the activities of the Ghana Electricity Company (ECG) on 1 March 2019 with an expected capital injection of 900 million GHS.