We’ve done nothing illegal – PDS reacts to allegations

We’ve done nothing illegal – PDS reacts to allegations
Source: Daily Graphic newspaper
Date: 07-08-2019 Time: 06:08:43:am

Power Distribution Services (PDS) says it has done nothing illegal in its transactions and is thus ready to fully cooperate with the government in its investigations to help find an early resolution to the dispute that has led the suspension of the power distribution concession agreement in the interest of the country.

PDS insisted that it had acted in good faith and had not engaged in any ‘fraudulent’ deal as Ghanaians had been made to believe and was thus ready to clear its name.

Reacting to the issues for the first time since the controversy came up following a terse statement that was issued last week, Chairman of PDS, Philip Ayesu, welcomed government’s proposed 30-day investigation into the issues, saying it would help the country clear its name of any wrongdoing.

As part of its commitment to resolve the impasse, PDS has also given an assurance that it will cooperate with all stakeholders in ensuring that power supply is not interrupted, pending the determination of the issues relating to the insurance company, AlKoot’s fraud claim made to the Electricity Company of Ghana (ECG), the Energy Commission’s alleged “unlawful acts” and restoration of normalcy as provided by the three Concession Agreements relating to the PDS Concession.

PDS has not done anything illegal and the investigations will help us clear our name,” Mr Ayesu stressed in an interview with the Daily Graphic newspaper.

He said he was optimistic that the commitment being shown by PDS would assist the government in the early resolution of the dispute.

The PDS Board chairman further indicated that the board had held an emergency meeting to discuss its plan and what it could do to ensure that there was a quick resolution of the issue.

Misleading

Mr Ayesu expressed the opinion that someone from the ECG had been trying to use AlKoot to mislead the government and was, therefore, of the belief that the truth and the facts would all be known when the investigations were completed.

“Whoever gave the government that hint or information schemed to procure a 16th July, 2019 letter from AlKoot, alleging that it had no relationship with PDS and that the Demand Guarantees presented by PDS were fake; did not exist as they were obtained by fraud, and was not signed by an authorised person,” he said.

Per Mr Ayesu’s explanation, it was strange that the said letter was not copied to PDS or the brokers of AlKoot, the reinsurance broker, Jo Australia and Donewell Insurance.

“By an email from AlKoot dated the 30th of July 2019, AlKoot stated that it had not received premium for the intention to cancel both Demand Guarantees,” he said.

On July 31, 2019, Mr Ayesu said AlKoot sent its formal notice of cancellation of the demand guarantees to its broker, Jo Australia, which was not copied in the July 16, 2019 letter from AlKoot to ECG which alleged fraud and raised forgery.

According to the PDS boss, the reason stated for the cancellation of the demand guarantees was not fraud or forgery and stressed that until July 31 both demand guarantees were in place and were only cancelled on July 31, for “non-receipt premium.”

“Meanwhile, PDS had paid the brokers of AlKoot (Donewell Insurance and Jo Australia) through CAL Bank for the payment of premium.


“PDS was presented with the July 16 letter of AlKoot for the first time on July 29, 2019 at the office of the Minister of Energy,” Mr Ayesu said.

He further maintained that since PDS had not procured the Demand Guarantees directly but through CAL Bank and Donewell Insurance, the company requested that representatives of the two organizations join in the meeting of July 29, 2019.

“A decision was taken at the meeting of July 29, this year that a team comprising all interested parties, ECG, CAL Bank, Donewell, PDS, Ministry of Energy, Ministry of Finance and the Millennium Development Authority (MiDA should be dispatched to Qatar on July 31, 2019 to verify from AlKoot.

“Awaiting the implementation of the plan as stated above, PDS received a letter from ECG on July 30, 2019, stating that since the Demand Guarantees were fraudulent, ECG had suspended the rights and obligations of itself and PDS under the concession,” Mr Ayesu explained.

ECG’s role

ECG as part of the due diligence is said to have received the letter from AlKoot, which alleged the fraud.

The PDS Chairman reacting said PDS was not copied on the said letter which alleged the fraud.

According to some sources ECG claims it wrote to PDS for clarification on their said discovery but PDS did not respond.

Read the full report in Wednesday’s edition of the Daily Graphic newspaper.