According Emmanuel Armah Kofi Buah, suspending the agreement is the short-sightedness of the NPP-led government adding that it is visionless.
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Suspending PDS agreement shows govt's super incompetence - NDC MP
Former Energy Minister has said the Electricity Company of Ghana (ECG) taking back Ghana's power distribution following the government's suspension of the concession agreement with the Power Distribution Services (PDS) indicates that the NPP government led by President Nana Addo Dankwa Akufo-Addo is "super incompetent".
ECG and PDS
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The government through the Informational Ministry said it has suspended its concession agreement with PDS.
The decision was taken after some fundamental and material breaches were detected on the part of PDS.
Emmanuel Armah Kofi Buah, former Energy Minister
Pulse Ghana
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A statement signed by sector Minister, Kojo Oppong Nkrumah, said some breaches in PDS' obligation in the provision of Payment Securities were detected.
"The Government of Ghana, through the Ministry of Finance and the Electricity of Ghana, has suspended the concession agreement with the Power Distribution Services (PDS) Ghana Limited with immediate effect," the statement 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 statement added that "government is conducting a full enquiry into the matter, and the outcome will inform the next course of action."
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However, the former Energy Minister who doubles as the Member of Parliament for the Ellembelle constituency in an interview on Accra FM said the government failed to do due diligence regarding the agreement.
"This is the short-sightedness of this government we talk about; they are super incompetent and visionless. This is a government that has lost its way."
ECG
Pulse Ghana
"The PDS contract was not done properly, we warned the government but this government did not listen," he said.
"The only solution to these problems is to vote out the NPP and bring back the NDC because the NDC has a good record in the power sector," he added.
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"What was the government's interest in allowing PDS to operate without a guarantee? the NDC MP quizzed.
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