Suspension of PDS Concession deal not surprising but has vindicated our position-Group

Convenor for Kwame Ghana-a group that petitioned Parliament over the concession of the Electricity of Ghana (ECG) to Power Distribution Services (PDS)- Kwame Been, says he has been vindicated.

He said the suspension of the concession as announced by the Information Ministry was not surprising but painful and could have been prevented if due diligence was done.

Speaking to Kwabena Agyapong on Rainbow Radio 87.5Fm, he said the PDS deal was done in a bad manner without recourse to the interest of the state.

He also indicated that Ghanaians were not angry enough to reject this bad deal but there is an opportunity for us to stand up against the deal and call on the government to cancel the deal in the interest of the state.

Parliament some few months ago approved the Electricity Company of Ghana (ECG) concession deal which saw a consortium of investors led by Manila Electric Company (MERALCO), running ECG.

The deal, which was part of the conditions of the second Millennium Challenge Compact, was designed to turn around the fortunes of ECG.

Parliament ratified the deal on Tuesday, 24 July 2018 despite criticism by the Public Utility Workers Union (PUWU) and fears by the Minority that it will lead to huge job losses.

The concession agreement between the Government of Ghana and Meralco came into operation on 2 August 2018.

However, the government has suspended the deal due to breaches discovered.

The government through the Ministry of Finance and the Electricity Company of Ghana Ltd. has suspended the concession agreement with Power Distribution Services (PDS) Ghana Limited with immediate effect.

The decision follows the detection of fundamental and material breaches of PDS’ obligation in the provision of payment securities (Demand Guarantees) for the transaction which has been discovered upon further due diligence.

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