Audio By Carbonatix
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 have been discovered upon further due diligence.”
Breaking the news on Joy News’ PM Express show Tuesday, he said government wants to secure ECG’s assets that were handed to PDS as part of the concession agreement.
“We have through deep intelligence detected that they have issues with those guarantees that were provided...they were not valid and as a step, we have taken measure to secure the assets of the state by suspending the concession agreement,” he told host Evans Mensah.
The Ofoase Ayeribi MP also disclosed that the Energy Commission has moved to revoke PDS’ distribution license and allow ECG to go back to work while government undertakes a full-scale enquiry.
PDS became the first private company to manage the affairs of ECG after Ghana won the Power Compact II that will inject some $900 million into power distribution.
ECG’s struggle to make profit over many years prompted the need for a private investor for the sector.
Below is the statement from government
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Karaga MP Dr Amin Adam upgrades basic school infrastructure, distributes 400 dual desks
18 minutes -
Uganda’s president heads for victory as his main rival cries foul
1 hour -
Lt Col Dela Galley makes history as first female commander of Ghana Military Police
1 hour -
Nollywood special effects artist, James Akaie dies on set following gas explosion
2 hours -
27-year-old sentenced to seven years for pouring acid on former student
2 hours -
Ghana’s US envoy links job creation to ending youth deportations
3 hours -
Blair and Rubio among names on Gaza ‘Board of Peace’
3 hours -
Minister calls for inter-ministerial force to fix Accra’s rush-hour transit crises
4 hours -
Sarkodie’s Rapperholic UK edition sells out Royal Albert Hall
4 hours -
Academic exodus: Ghanaian PhD students in UK forced to withdraw as Scholarship Secretariat fails to pay fees
5 hours -
Antoine Semenyo’s £65m Manchester City switch sparks discussions in UK Parliament
6 hours -
Transport crises, Prof. Frimpong-Boateng v NPP and LGBTQI issues take centre stage on Joy Prime’s ‘Prime Insight’
6 hours -
Ghana Navy busts major fuel smuggling syndicate along Volta coast
7 hours -
Karaga MP donates 4,000 gallons of fuel to boost livelihoods in New Year outreach
7 hours -
GIPC CEO engages European Parliament delegation on Ghana’s investment reforms
8 hours
