John Dramani Mahama, flag bearer of the National Democratic Congress (NDC), has expressed his intentions to fully investigate the PDS scandal to bring perpetrators of the act to book.
He says the US$190 million loss to the deal as a result of what he describes as “yɛnkyɛndi and cronyism” governance practice by the Akufo-Addo-Bawumia government would have to be investigated.
According to John Mahama, the amount loss is “unacceptable”, adding that the Ghanaian people “deserve better.”
In a post on his Facebook Friday, May 10, 2024, the former President said he is counting on Ghanaians to do him the favour electing as President to bring culprits of the scandal to book.
“It’s disheartening to learn that the $190 million we negotiated for private sector participation in electricity distribution under the US Millennium Compact has been lost due to Nana Addo and Bawumia’s corrupt, ‘yenkyendi’, and cronyism governance practices.
This is unacceptable, and we deserve better as a people.
He expressed his intent to ensure private sector efficiency in power distribution in the country.
“As I gear up to assume the presidency in January 2025, thanks to your votes and endorsement in this year’s election, I want to assure you that I will work diligently to enhance private sector efficiency in the electricity distribution system, including metering, revenue management, and fault response,” portions of his post contained.
He noted further that “my administration will prioritise accountability and ensure a thorough investigation of the PDS scandal to hold those involved accountable.”
The PDS scandal
The government of Ghana entered into a concessional agreement with Power Distribution Company (PDS) to take over electricity supply in the country from state-owned Electricity Company of Ghana (ECG). The concession agreement was terminated on the instruction of President Addo Dankwa Akufo-Addo in October 2019.
The termination brought to an end, PDS’ short-lived control of the country’s electricity supply.
The company was engaged in March 2019 but was suspended on July 30. Since its suspension, there had been a corporate governance tussle among its shareholders.
A Ghanaian local consortium held 51 per cent of the shares while the remaining 49 per cent shares are for two foreign companies – Manila Electric Company Limited (Meralco), a Filipino company with 30 per cent shares and Aenergia, an Angolan company with 19 per cent.
Foreign player, Meralco offloaded its shares to Meridian Power Ventures Ltd, the US-backed Millenium Development Authority (MiDA) confirmed.
PDS was suspended after the government said it suspected the agreement was tainted with fraud.
The transaction advisor, MiDA, set up an investigative body to probe the allegations and cleared PDS of fraud.
Despite the clearance in August, PDS remained suspended and the government has now taken a decision to cancel the agreement, sources have maintained.
Ghana has lost a $190 million grant by its US partners as part of a power concession agreement.
A statement from the US embassy said the Millennium Challenge Corporation (MCC) confirmed that the money was no longer available after Ghana decided to terminate the agreement with PDS.
“Based upon the conclusions of the independent forensic investigation, the U.S. position is that the transfer of operations, maintenance, and management of the Southern Distribution Network to the private concessionaire on March 1, 2019, was valid and therefore the termination is unwarranted,” the US government said.
