Energy Policy think-tank, Africa Centre for Energy Policy (ACEP), is calling for an urgent restraining order on the leadership of the Millennium Development Authority (MiDA), the implementing agency for Ghana’s Power Compact.
The call by ACEP comes at the backdrop of the gone-bad Electricity Company of Ghana (ECG) concessionaire agreement with Power Distribution Services (PDS).
The action, according to the energy policy think-tank, is to allow for thorough investigations into alleged fraudulent misrepresentation of PDS in the concessionaire agreement.
Addressing a news conference in Accra, Executive Director of the Centre, Ben Boakye, said though ACEP is not surprised about government’s suspension of the contract, it is worrying that MIDA is accused of not ensuring due diligence on the payment of securities provided by PDS.
Mr. Boakye, stated that, preliminary information available to the organisation connotes, the insurance provided by PDS has been declared fraudulent by the Qatar-based Alkoot Insurance.
Expressing ACEP’s worry over the suspended agreement, Mr. Boakye, decried the level of negligence of MiDA which has led to the current situation.
In ACEP’s view, MiDA failed to act diligently while handling the concession which saw PDS take over the services of the Electricity Company of Ghana (ECG).
Mr. Boakye also mentioned that, all cautions and concern over the quality of the process in appointing Philippines-based Meralco Consortium (the parent company of PDS) were ignored.
The suspension was made known by the Minister of Information, Mr. Kojo Oppong Nkrumah on Tuesday, July 30, 2019 following the discovery of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees).