The US Embassy in the Republic of Ghana says it is awaiting an independent forensic audit of the Power Distribution Services (PDS) concession deal authorised by the Millennium Development Authority (MiDA) Board of Directors before it makes a decision on the matter.
According to the US Embassy, “U.S. Government strongly supports the decision” which it says is needed before any action is taken on the alleged fundamental and material breaches of PDS’ obligations to Ghana.
“Only then can all relevant parties make a transparent and evidence-based decision that is in the best interest of the citizens of Ghana,” the Embassy said in response to queries by Accra based Citi FM.
The queries, among others, concerned the role of the embassy and the Millennium Challenge Compact in possibly resolving the matter, potential actions if the government cancelled the deal and thoughts on alleged fraud in the deal.
The Embassy also assured that the US favoured a “transparent, well-run transaction that meets international standards for private sector participation, investment, and operations.”
“The U.S. Government expects that MiDA, PDS, and the Government of Ghana will continue to work together to implement the bold solutions and partnership of the MCC compact that have been fostered to enhance the reliability of the country’s power network and improve the lives of millions of Ghanaians.”
PDS took over the power distribution business from the ECG in March 2019 after winning a bid to run the power distribution in Ghana as part of the Millennium Challenge Account (MCA) compact which was signed in 2014.
However, barely five months of operations, the Government of Ghana, through the Information Minister, Kojo Oppong Nkrumah, announced the suspension of PDS.
In a statement, government said the suspension was as a result of what it described as ‘fundamental and material breaches of PDS’ obligation in the provision of Payment Securities for the transaction’ which had been discovered upon further due diligence.
The statement said a full-scale enquiry into the power concession agreement with PDS Ghana Limited had begun and was expected to last for 30 days.
