The Millennium Challenge Corporation notified by government over PDS contract termination.
PDS activities were halted after government sensed “fundamental and material breaches of PDS’s obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which have been discovered upon further due diligence.”
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The Millennium Challenge Corporation (MCC) has been updated by the government of Ghana over Power Distribution Services's (PDS) contract termination.
Government has confirmed its declaration to terminate the consensus it made with PDS to manage the assets of the Electricity Company of Ghana (ECG).
PDS activities were halted after government sensed “fundamental and material breaches of PDS’s obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which have been discovered upon further due diligence.”
A letter dated October 18, 2019 signed by the Minister of Finance has been sent to the Millennium Challenge Corporation of the United States of America who partnered with the government to reassigning Ghana’s Energy sector to a private company. The letter is an explanation of PDS deception and unrealistic conduct as the reason for Ghana’s withdrawing from the breach.
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Mr Ofori-Atta, in the letter, said investigations revealed that the demand guarantees presented by PDS which were purportedly issued by a Qatari insurance company known as Al Koot were a sham. He addressed that investigations showed that the said demand guarantees were not approved by the authorized staff of Al Koot, neither did the insurance firm even have the mandate to issue such guarantees.
“The actual details of the purported insurance cover for the transaction furnished by PDS disclose further gross deception and unprofessional conduct on the part of PDS. Whereas Al Koot was produced by PDS as the primary insurer, the reality of the scheme deployed by PDS in the procurement of the invalid demand guarantees suggests that Al Koot was only put forward by PDS as a ‘front’, with the actual obligation retroceded to a number of unknown and obscure insurance firms from unfamiliar jurisdictions around the world,” the letter from the government to the MCC stated.
A source has revealed that government will notify PDS about its intention before the close of the week and issue a press statement in due course.
