The Africa Centre for Energy Policy (ACEP) is calling for the immediate interdiction of the leadership of the Millennium Development Authority (MiDA) – the implementing agency for Ghana’s Power Compact.

This call comes on the back of government’s suspension of the Power Distribution Services (PDS) over what it says were fundamental and material breaches in the payment of demand guarantees by the PDS.

Already there are calls for an immediate probe into the matter which has been described as a national embarrassment.

Addressing a news conference on the development, Executive Director of ACEP Benjamin Boakye blamed MiDA for shirking its responsibilities hence necessary action must be taken on its leadership to ensure they do not interfere with investigations.

Meanwhile, another energy think tank, the Institute of Energy Security is of a contrary view on the role of MiDA in the botched PDS deal.

Research and policy analyst with the institute, Mikdad Mohammed told Starr News, but for the proactiveness of MiDA, Ghanaians would have been fully ripped off.

Suspension of contract

Government suspended its contract with the Power Distribution Services (PDS) on Tuesday with immediate effect.

“The Government of Ghana through the Ministry of Finance and the Electricity Company of Ghana (ECG) Ltd. has suspended the concession agreement with Power Distribution Services (PDS) Ghana Limited with immediate effect”.

The statement further said:  “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.

“The Demand Guarantees were key prerequisites for the lease of assets on 1st March, 2019 to secure the assets that were transferred to the concessionaire. The government is conducting a full enquiry into the matter, and the outcome will inform the next course of action”.

It added: “Government has taken steps to ensure distribution, billing and payment services continue uninterrupted. The general public and customers are assured that this development will not interfere with the distribution of electricity services to customers”.

Source: Ghana/