A procurement expert, Kobina Ata-Bedu has faulted government for seeking to transfer shares owned by Ghanaians in Power Distribution Service to a new company without due process.
According to him, resistance from Ghanaian shareholders in PDS of the government’s move is part of the reasons which have led to the suspension of the contract of PDS.
Three Ghanaian businesses own 51% majority shares in the PDS. GTS Power Limited has 10%, Santa power limited has 13% while TG energy solutions limited has 28%.
In a letter addressed to Chairman of the Negotiation Committee of ECG-PSP, Mr. Akoto Ampaw, the Minister for Finance and Economic Planning wrote;
“Following the conclusion of ECG’s transfer of its power distribution business to PDS, it is of paramount importance to ensure the security of the PDS business and its ownership by Ghanaian shareholders.
“In other to safeguard the Ghanaian ownership of PDS and to ensure that control of PDS is secured with Ghanaians in a unified manner, the Ministry requires that the Ghanaian Shareholding is consolidated and held by a single newly incorporated Ghanaian entity (SPV),” Ken Ofori –Atta wrote.
Kobina Ata-Bedu faults this intervention from the Finance Ministry on several fronts.
Speaking on Accra based Joy FM, he questioned the remit of the Minister of Finance to dictate to a private company on which entity to hold its shares.
“PDS as a consortium is a private entity that government cannot interfere with.”
Mr. Ata-Bedu also pointed out that the new company the Finance Minister is proposing has not gone through any procurement process to be given 51% shares in the management of power distribution in Ghana.
He described the approach as a “back door one.”
“The new vendor the finance minister is introducing must go through tender because once you give a contract out you don’t have any control over it again,” he added.
