The Government of Ghana has declared its intention to cancel a power
concession agreement entered into with the Power Distribution Services
(PDS) Ghana Limited to manage the assets of the state owned Electricity
Company of Ghana for a period of 20 years.
This follows the suspension of the same agreement in July, following allegations of
fraud brought against PDS in securing a demand guarantee before the concession
came into effect.
A letter signed by the Finance Minister, Mr. Ken Ofori-Atta, said an agreement had
been reached between officials of the Government of Ghana and the United States
of America, following a thorough review of the agreement.
The Daily Graphic report on Monday said that “the actual details of the purported
insurance cover for the transaction furnished by the PDS disclosed further gross
deception and unprofessional conduct on the part of PDS”.
According to the report, the letter, which was addressed to the Chief Executive Officer
of the Millennium Development Authority (MiDA), was leaked to the media and some
portions of it have been published.
DAP/GIK/APA