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PDS deal: MiDA shifting blame to Bawumia – ACEP suspects ‘mischief’
September 13th, 2019

PDS deal: MiDA shifting blame to Bawumia – ACEP suspects ‘mischief’

Millennium Development Authority insist that the PDS agreement was carefully scrutinized

Transaction advisors in a concession agreement with energy company, Power Distribution Services (PDS) have been accused of shifting blame after controversy gutted the agreement.

In the controversy, Power Distribution Services (PDS) have been found to lack the financial capacity to provide $12.5m in guarantees when they took over ECG management in March 2019.

Read: Government, MiDA knew PDS was financially weak – ACEP

PDS has been suspended. But the agreement to provide demand guarantees has been now downgraded to insurance guarantees.

Millennium Development Authority (MiDA) and International Finance Corporation (IFC) who are the transaction advisors commissioned an investigation into the PDS deal.

In its report, it mentions a meeting in the Office of the Vice President Dr Mahamudu Bawumia attended by top government officials including Finance and Energy ministers and the Chief of Staff.

It was at this meeting that the decision was taken to convert payment guarantees to insurance guarantees.

ACEP Executive Director Ben Boakye wants to know the position of the transaction advisors on that decision.

“They cannot sit aloof and say that we didn’t do anything,” he said on JoyNews late evening program, PM Express.

Ben Boakye noted that several sources have pointed to pressure from MIDA and IFC to push through the PDS agreement.

Read: Government scheming to handover PDS’ assets to French EDF – NDC

But in the report, the energy expert said he observed that there was “a very crafty attempt to exonerate the transaction advisors and start pointing fingers at some people.”

The ACEP Executive Director said his checks show MiDA no longer publishes minutes of Board meeting since the controversy began.

Before that, the transaction advisor regularly did so, he said. “We want to see what advice they gave to the government”, he pushed for the publication of the minutes.

 

Source: Myjoyonline.com