• IT EXPRESSED SHOCK THAT PDS WHICH WAS SUSPENDED OVER FRAUD, WAS GIVEN THE GREEN LIGHT TO CONTINUE ITS MANDATE UNDER THE CONCESSION AGREEMENT
The Chamber of Petroleum Consumers (COPEC) Ghana is demanding the immediate arrest and prosecution of all persons whose negligence led to the termination of the controversial PDS agreement.
It said all public and government officials “so connected either directly or remotely to this fraudulent PDS deal be made to suffer all such consequences”.
A termination of the PDS-ECG concession agreement is set to be announced by the government this week following evidence that PDS failed to fulfil all the condition precedent of the deal which took effect on March 1, 2019.
It emerged on October 19, 2019 that President Nana Akufo-Addo at a meeting with the Millennium Challenge Corporation (MCC) in New York on September 23, 2019 informed the US organisation of his government’s decision to terminate the PDS agreement.
“PDS HAS SINCE BEEN MANAGING THE ASSETS AND WORKFORCE OF OUR ECG WITHOUT ANYONE ANSWERING ANY QUESTIONS FOR THE SAID ‘FRAUD’ SAID TO HAVE BEEN PERPETRATED ON THE GOVERNMENT AND PEOPLE OF GHANA”.
Critics of the agreement have welcomed the termination of the deal over “fundamental and material breaches”.
COPEC in a statement said the decision to give out ECG on a 25-year concession is not a bad but political interests exhibited in the etire processes leading to the signing and take eventual over by the PDS was an issue.
“Conditions that should ordinarily be met before the handing over of our ECG were obviously subverted and overlooked by the very people tasked with protecting the public purse,” COPEC observed.
It expressed shock that PDS which was suspended over fraud, was given the green light to continue its mandate under the concession agreement
“PDS has since been managing the assets and workforce of our ECG without anyone answering any questions for the said ‘fraud’ said to have been perpetrated on the government and people of Ghana”.
COPEC has asked government to within 14 days, audit and where necessary surcharge of any financial losses occasioned by the concession agreement and findings communicated publicly.
Read the full statement below
PROSECUTE ALL THOSE WHO ENGAGED IN THE NEGLIGENCE AND ‘FRAUD’ BEFORE ANOTHER CONCESSION
Our attention has been drawn to Government’s decision to finally terminate the PDS deal after months of investigations, accusations, counter accusations, public backlash and media discussions.
Whiles we will ordinarily avoid any public commentary on issues of power and electricity generation, we have become increasingly mindful of the fact that corruption, mismanagement and poor judgement which often results in debts and overruns in the entire energy sector eventually comes back to be added to the price-build up of petroleum products in the form of energy debts.
To this end, we from time to time will continue to exert the necessary pressures on policymakers and managers of all such energy institutions whose actions and inactions continue to lead to avoidable debts in the energy sector.
The decision to give out Electricity Company of Ghana on a 25 year concession agreement to PDS with the view to improving equipments, technology, operations and cash flow is overall not a bad decision except for the overplayed of vested economic and political interests within the entire processes leading to the signing and take over by the PDS.
Whiles commending civil society actors, members of the Mines and Energy Committee of Parliament and key actors within ECG who even after the concession agreement didn’t go to sleep but kept working in the interests of the state, same cannot be said of some highly placed Government and public officials whose actions and inactions has led us all to this point.
Conditions that should ordinarily be met before the handing over of our ECG were obviously subverted and overlooked by the very people tasked with protecting the public purse.
Bank guarantees that should have been in place before the concession were converted to insurance guarantees which was further procured fraudulently as those who signed for the said insurance brokers ( alkoot ) clearly didn’t have any real mandates to do so but our poor due diligence couldn’t even reveal this fundamental fraud until several months after handing over of ECG to PDS.
Governments assurance to investigate and punish those engaged in the said fraud within a month period was clearly violated also as the suspended PDS found its way back to managing of the very entity it had been accused by the current Energy Minister of obtaining fraudulently was handed back to them even after a suspension by the Energy Commission.
PDS has since been managing the assets and workforce of our ECG without anyone answering any questions for the said ‘fraud’ said to have been perpetrated on the government and people of Ghana.
The realisation that it had to take the Millennium Compact Challenge ( USA ) issuing a deadline for the government of Ghana to terminate the entire PDS deal on or before the 18th of October 2018 or be sent a de-obligation order following which the Finance Minister had to issue a 9 page memo cancelling the PDS deal leaves a lot to be desired.
The following continues to remain unresolved and we will want to have the Government work harder within the next 14 days to address in the interest of public good: