PDS sue Government for terminating contract

PDS sue Government for terminating contract

Electricity service provider, Power Distribution Services (PDS) has turned to court, to address the termination of its contract with the government of Ghana.

The Information Minister, Kojo Oppong Nkrumah revealed this, speaking on Joy News’ PM express.

KOJO OPPONG NKRUMAH

He however noted that, the government maintains its position that there were irregularities in the PDS agreement, hence its termination.

“They have proceeded to say that if there was a fraud, find the people and put them before the courts and that is currently a matter of litigation in a court in Ghana,” Mr. Oppong Nkrumah said.

He said the government have enough grounds for contesting, and are confident to win the case in court.

 

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The government through the Ministry of Finance and the Electricity Company of Ghana (ECG) Limited suspended the concession agreement with PDS Ghana Limited on July 30, 2019.

According to the government, the decision followed 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.

Government dealings with the PDS, though terminated, has sparked uproar among the opposition National Democratic Congress (NDC)

The NDC demanded that the Akufo-Addo government give a detailed account of funds generated in the failed operations of the Power Distribution Services (PDS) in the country.

The opposition also wants full disclosure of the “total amount of monies the PDS collected from electricity consumers, in the form of electricity bills from 1st March, 2019, to 18th October, 2019’ when the concession agreement was in force.

The party’s National Communication Officer, Sammy Gyamfi, at its media event dubbed ‘Corruption Tracker series’, argued that per the NDC’s audit, an amount of GHS 1.5 billion was accrued in the ‘fraudulent’ PDS operation, and is yet to be accounted for by the Akufo-Addo government.