Government of Ghana, through the Ministry of Finance and the Electricity of Ghana (ECG), suspended the concession agreement with the Power Distribution Services (PDS) Ghana Limited with immediate effect.
The decision follows the detection of fundamental and material breaches of PDS’s obligation in the provision of payment Securities (Demand Guarantees) for the transaction which has been discovered upon further due diligence.
The demand guarantees were key prerequisites for the lease of the assets on 1st March, 2019 to secure the assets that were transferred to the concessionaire.
According to a statement signed by the Minister for Information, Kojo Oppong Nkrumah, government is conducting a full inquiry into the matter and that the outcome will inform the next course of action.
He added that government has taken steps to ensure distribution, billing and payment services continue without hitches.
Government has assured the general public and customers that the outcome will not interfere with the distribution of electricity services to customers.
Ghana | Atinkaonline.com