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21.10.2019 General News

PDS Fiasco: Clean MiDA Or Face Horrible Part Two Of PDS — Duncan Amoah

By Simon A. Tetteh
PDS Fiasco: Clean MiDA Or Face Horrible Part Two Of PDS — Duncan Amoah
OCT 21, 2019 GENERAL NEWS

Executive Secretary for Chamber of Petroleum Consumers Ghana (COPEC Ghana), Duncan Amoah is asking government to dissolve the Millennium Development Authority (MiDA) Board from being part of any transaction of the concessionaire agreement after the rot.

According to him, the position of government through the Ministry of Finance to adopt a restricted tender to replace PDS in a limited time is in bad fate.

Government, after the vigilance of the minority in parliament terminated the concession agreement of PDS in view that it acted fraudulently to meet a condition precedent of providing a BSA Payment Security and an LAA Payment Security.

The condition precedent mandates PDS to furnish the Electricity Company of Ghana (ECG) with payment securities in the form of either a Demand Guarantee or a Letter of Credit issued by a qualified bank, however shortchanged the government in the process.

Speaking on Adom fm’s Dwaso Nsem, Duncan Amoah said, government must prosecute all persons in connection to the agreement and clean the MiDA Board immediately.

He said the Chamber's stance in the PDS issue is deemed fit on the fact that debt accumulated in other parts of the energy sector through other bodies is compounded on fuel prices, hiking fuel prices.

In his view, the government should clean the MiDA Board with immediate effect.

“If government doesn’t clean the MiDA Board immediately with a different pair of hands to oversee the next process which is not a competitive bid process but a restrictive tendering, what it means is that if care is not taken there will be a part two of PDS,” he told the host.

He added that the same board should be disallowed in overseeing the same agreement that has caused the country huge sums already. “Whiles government takes steps to prosecute persons found culpable in the dealings, it is essential to clean the MiDA Board immediately and also go through a thorough process.”

Duncan Amoah stressed that, the government’s hast to meet the Millennium Challenge Compact’s agreement (MCC) 19th of December deadline in order not to lose its investment is unfortunate.

He explained that the MCC’s investment of $500million and an expectation of $500million local investment, amounting to $1billion (ghc5.5 billion dollar equivalent) shouldn’t be the basis to risk an investment of Ghc22billion.

He advised government to "tread cautiously” in the privatization of ECG.

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