PDS Saga: Gov’t To Conclude Investigation Into ‘Purported’ Breaches In 30 Days

Ghana’s Information Minister, Kojo Oppong-Nkrumah has revealed that government has commenced a full scale inquiry into the purported breaches in the concession agreement it signed with the Power Distribution Services Ghana Limited, a private entity which was mandated to manage electricity distribution business in the West African country.

According to the minister, investigation into the alleged breaches in the agreement is expected to be completed within 30 days.

He told journalists at a press briefing in Accra, capital of Ghana on Thursday that the team conducting the inquiry comprises insurance investigation experts, officials of the Energy and Finance Ministries and officials of the Electricity Company of Ghana (ECG) as well as Millennium Development Authority (MIDA). 

“The inquiry will determine the nature of the breaches and advise on suggested next steps. By Tuesday, the team is expected in DOHA-Qatar as part of the inquiry. All interested parties are cooperating with the inquiry at this stage,” Kojo Oppong-Nkrumah said.

Government of Ghana, through the Information Minister, Kojo Oppong-Nkrumah, last Tuesday, July 30, 2019 announced the suspension of PDS over some breaches in the concession agreement signed with government.

“The decision follows the detection of fundamental and materials breaches of PDS obligations in the provision of Payment Securities (Demand Guarantees) for the transaction, which have been discovered upon further due diligence. 

“The Demand Guarantee were key prerequisite for the lease of assets on the 1st March, 2019, to secure the assets that were transferred to the concessionaire,” the statement indicated. 

Giving details on government’s next line of action, Mr Oppong Nkrumah said the inquiry will determine the nature of the breaches and advise on suggested next steps.

“By Tuesday, the team is expected in DOHA-Qatar as part of the inquiry. All interested parties are cooperating with the inquiry at this stage. A second team has been tasked to continue engagement with the American government through its agency the Millennium Challenge Corporation,” he said.

 UPDATE ON PDS SUSPENSION

Reference to the Press Statement Issued by the Ministry of Information dated 30th July 2019, on the matter of the suspension of the concession agreement between Government of Ghana and PDS, Government hereby updates the Ghanaian Public as follows;

1. The full scale inquiry into the detected breaches has commenced and is expected to be completed within 30 days. The team conducting the inquiry comprises insurance investigation experts, officials of the Energy and Finance ministries and officials of the ECG and MIDA as well. The inquiry will determine the nature of the breaches and advise on suggested next steps. By Tuesday, the team is expected in DOHA-Qatar as part of the inquiry. All interested parties are cooperating with the inquiry at this stage.
2. A second team has been tasked to continue engagement with the American government through its agency the Millennium Challenge Corporation. This engagement is about the possible next steps after the inquiry and channels for sharing information as part of this inquiry. That team is expected to also be in the USA possibly next week as part of their engagement.
3. Final efforts to ensure a smooth transition between ECG and PDS officials are proceeding without incident.
4. We reiterate that this breach was discovered by the due diligence of the Ghanaian authorities through ECG and with the support of state agencies.

1. For the avoidance of doubt, the provision of the payment guarantee has always been a condition precedent and was never changed to a condition subsequent as being speculated by some persons.
2. Initial Due Diligence led by the transaction advisors did not detect anything wrong with it.
3. The second level checks (this time led by the Ghana side) initially yielded a response from Al-Koot confirming the guarantee.
4. It was a third level check by the Ghana side that detected anomalies within Al-koot thereby triggering a fourth level check.The fourth level check involved sending an initial team from the Ghana Mission in Qatar to engage with Al-koot officials for further verification. This fourth level further proved the anomalies and suggested untoward action which is now the subject of the full scale inquiry.
5. Government will update all stakeholders on the outcome of the inquiry and proceed in accordance with law and the terms of the agreement as it works towards a final resolution of this matter.