The Chief Executive of Power Distribution Services Ghana (PDS), Rev. Ing. William Hutton-Mensah has maintained that the company has always acted in good faith, in its dealing with government with regards to the takeover of the Electricity Company of Ghana.
The concession agreement which took effect from March 1, 2019 hit a snag on Tuesday, July 30, 2019 when government of Ghana announced that it has suspended the agreement.
PDS was supposed to manage the operations of the Electricity Company of Ghana (ECG) for 20 years.
But it has emerged that the agreement was fraught with some illegalities, which government is currently investigating.
“The decision follows the detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which have been discovered upon further due diligence,” Information Minister, Kojo Oppong Nkrumah said in a statement issued on Tuesday.
Meanwhile, 3news.com has gathered that the officer who executed the Demand Guarantees (Lease Payment Security and BSA Payment Security) submitted by PDS was not authorized. Now the commercial insurer and reinsurer, Al Koot, says the agreement is null and void.
But William Hutton-Mensah in a statement published on PDS’ website said the company has taken note of the government’s statement, stressing, “PDS wishes to state for the record that it has always acted and will continue to act in good faith at all times.”
He said PDS will go through due process by complying with the terms of the transaction agreements executed between it and ECG on one hand and government of Ghana through the Ministry of Finance on the other hand.
“PDS also wishes to assure the Ghanaian public that it will not rush to put out any information until it has been sufficiently substantiated, in the interest of safeguarding the transaction and the image of Ghana,” PDS Chief Executive Officer noted on Wednesday.
PDS is a Meralco-led Consortium made up of Meralco, three Ghanaian owned companies; TG Energy Solutions Ghana Ltd, Santa Power Ltd, and GTS Power Ltd with AEnergia SA of Angola.
PDS was mandated to undertake ECG’s Financial and Operational Turnaround Project and for that matter took over the management and operations of ECG.
By Isaac Essel | 3news.com | Ghana