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24.10.2019 General News

PDS Saga: Gov't Defends Resolution Of Compact II Agreement

PDS Saga: Gov't Defends Resolution Of Compact II Agreement
OCT 24, 2019 GENERAL NEWS

The Minister for Information, Kojo Oppong Nkrumah has disclosed that the Government of Ghana (GOG) and the United States Government (USG) have come to a conclusion on the resolution of residual matters of the compact II agreement on the ongoing PDS Scandal.

According to him, although it has been widely spread, the GOG has elected to terminate the concession agreement with PDS Limited which was the properly selected concessionaire.

Addressing the media at a briefing, the Minister said “ In return, the US side has de-obligated to make available the outstanding USD$190m in the USD$498m compact”.

He also noted that both parties could not find a mutually agreeable path to have concluded the utilization of the full USD$498m.

The Minister also hinted that GOG consequently from 9am on Wednesday commenced the processes to terminate.

He emphasized that the necessary documents are being filed with PDS and the Energy Commission.

“ECG has remained in possession of assets while PDS has been assisting it with some limited services in the period during which the concession was suspended prior to this termination,” he disclosed.

The Information Minister revealed that Government has also used the trial moments to address a number of issues that have been raised.

He mentioned that some of the issues include; ‘Can this failure to deliver and maintain valid securities have been discovered earlier among others are some of the question asked by the public.

‘Is it true the transaction was botched by come machinations by Government’ likewise if the Akufo-Addo administration still interested in PSP?

On whether Government has acquiesced to the MSS pressure to save the USD$190M, Hon. Oppong Nkrumah stressed that the Akufo-Addo government do not believe so.

The Information Minister said “The NDC distortions that the Akufo-Addo government conspired to bend the rules for PDS have clearly been exposed by the record of events. For the avoidance of doubt, government reiterates that neither it nor the President has any interest in PDS.

He stressed that PDS is a consortium created by the Melraco Company which was the successful bidder in the selection process.

Background

The Government of Ghana in 2014 during the Mahama administration signed up to the compact agreement and opted for Private Sector Participation in the ECG turnaround. NPP through the Akufo-Addo government says it has lifted Ghanaian participation from 20% to 51% that the country benefits from both the technical know-how of the concession. The ruling Government believes that any transaction of this nature must be structured to give the citizenry and nation, a significant play.

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