Audio By Carbonatix
The Millennium Development Authority (MiDA) has said contrary to reports each step of the ECG PSP transaction process, prior to the handover of ECG’s distribution business and assets to PDS, was subjected to careful scrutiny and various stakeholder approvals.
In a statement Thursday, the Authority clarified that the scrutiny involved several documents submitted as requirements for the transaction process.
“In line with best practice in International Business Transactions, all documents submitted as part of the transaction were accepted on the basis of good faith and the presumption in law as to their validity,” MiDA said.
Government has suspended the concession agreement with Power Distribution Services (PDS), bringing back the Electricity Company of Ghana (ECG) to be in full control of power distribution.
According to Information Minister, Kojo Oppong Nkrumah, the decision was taken after government detected “fundamental and material breaches of PDS’s obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which has been discovered upon further due diligence.”
He said government wants to secure ECG’s assets that were handed to PDS as part of the concession agreement.
“While the current development is an unfortunate setback to the progress of the Concession, MiDA wishes to assure the public that it welcomes investigations into this matter,” it said.
MiDA also assured Ghanaians that it will continue to work transparently and with a high level of integrity to achieve results in the best interest of Ghana in order to sustain the goodwill and prospects our country derives from the implementation of the Millennium Challenge Account Program.
MiDA advised the public to be circumspect in drawing conclusions not supported by facts and evidence while investigations are ongoing.
Read MiDA’s detailed release on the transaction
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