Audio By Carbonatix
Government has denied claims that it waived some conditions of original Power Compact II agreement to favour Power Distribution Services (PDS).
Sekondi MP, Andrew Egyapa Mercer said the accusations are baseless because government only came to implement what had already been approved by Parliament.
Referencing portions of the agreement, he said “Parliament itself in approving the contract gave power to the parties to waive, vary or change some of the conditions precedent.
“Government has not, did not depart from the original pact as commenced by the NDC,” he said in response to Yapei/Kusawgu MP, John Jinapor on JoyNews’ news analysis programme, Newsfile Saturday.
Mr Jinpaor said had government allowed the deal to go through the required processes, the fraud that has been detected months after the concession was agreed would not have happened.
But Mr Mercer explained that the only change government made upon assumption of office in 2017 was the percentage of local and foreign participation.
“What government changed was the percentage of the participation relative to foreign and Ghanaian from t eh 80-20 that the NDC had approved to 49-51.
“The rational was simple that transforming ECG was not rocket science. In any event, if there was going to be any benefit, why don’t we allow Ghanaians to have more. So as far as I am concerned, it was a good decision and they had to renegotiate to get that variation approved,” he added.
PDS took over some assets and operations of the ECG including electricity service distribution in all of ECG’s operational areas in Ghana.
The new arrangement was among other things expected to cut distribution losses to the barest minimum while delivering improved power services to Ghanaians.
However, the government on Wednesday night announced unceremoniously that PDS’s right to distribute power had been suspended.
“The decision follows the detection of fundamental and material breaches of PDS obligations in the provision of payment securities (Demand Guarantees) for the transactions which has been discovered upon further due diligence,” a government release said.
The release further revealed that the Electricity Company of Ghana had been directed to carry out duties which were being performed by the PDS until its suspension. All PDS accounts have also been frozen.
Latest Stories
-
The ungodliness and unrighteousness underlying the National Cathedral mess!
3 minutes -
T-bills auction: Government fails to achieve target; yield on 91-day-bill remains unchanged
14 minutes -
It’s Ghana’s shame to denigrate Nkrumah when the whole world honours him as African of the Century – Asiedu Nketiah
21 minutes -
No other nationalist can compare to Nkrumah – Asiedu Nketiah
28 minutes -
Collateral Registry: Foreign banks accounted for GH¢19.9bn of secured credit in quarter 2, 2026
29 minutes -
This government should expect scrutiny – Asiedu Nketiah
54 minutes -
Two-year-old girl dies in domestic fire at Cantonments
2 hours -
Asiedu Nketiah urges better working conditions for journalists
2 hours -
JoyNews’ Precious Semevoh wins climate change reporting award at Bono GJA Awards
2 hours -
Kumasi Central Market phase 2 to begin in October after years of abandonment
2 hours -
Sentuo offers fuel supply reassurance as NPA sees steady output through December
3 hours -
Ghanaian smock showcased at Lesotho Tourism Summit
3 hours -
Four pupils to one desk: The painful plight of schools in New Juaben North
4 hours -
Ipswich launch investigation into racist abuse of Abdul Fatawu
4 hours -
Arrest of Techiman nurse is purely political persecution – ‘Ghana Jollof’
4 hours