Minister for Energy John Peter Amewu has said investigations conducted by the government has established that a document that was presented by Power Distribution Service (PDS) as a guarantee for the takeover of Electricity Company of Ghana (ECG) was forged.
The minister explained that even though the document indicated that a company in Qatar has guaranteed for PDS, the management of the company told the government it had no knowledge of the document.
Speaking to Citi FM, Mr. Amewu stated that the government will prosecute anyone found to have engaged in the fraudulent act.
"Now the investigation that has been conducted through due diligent processes have established that the payment guarantee that was submitted by PDS to ECG for some reasons, the word fraudulent has been used in it, and the quasi executing authority denied ownership of such document and therefore I have written to ECG to announce that we had nothing to do with this document and if there should be any liability we not be responsible, that document is considered null and void by the purported executing authority which is in Qatar..."
Suspension of concession deal
Government has on Tuesday, July 30 suspended its concession agreement with the Power Distribution Services (PDS)who were the distributors of electricity in Ghana.
This moves means that the Electricity Company of Ghana will once again take full control of power distribution.
The decision according to government was taken following the detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) which was discovered upon “further due diligence.â€
“The Demand Guarantees were key prerequisites for the lease of assets on 1st March 2019 to secure the assets that were transferred to the concessionaire,†a statement signed by the Minister of Information, Kojo Oppong Nkrumah stated.
Despite the action, the statement clarified that “The general public and customers are assured that this development will not interfere with the distribution of electricity services to customers.â€
“The government is conducting a full enquiry into the matter, and the outcome will inform the next course of action. Government has taken steps to ensure distribution, billing and payment services continue uninterrupted,†the statement added.