Boakye Kyeremateng Agyarko, a former Minister of Energy has said the call by his colleague former minister of the sector, Dr. Kwabena Donkor, to have all officials from the NPP involved in the termination of the power purchase agreement leading to the $140 million Trafigura judgement debt is “unfortunate and ill-informed.”
The former Minister has said the termination of the contract which has resulted in the judgement debt putting the country’s assets in the United Kingdom at risk should be probed with those at the hem of affairs at the time being made to answer some questions.
In a statement released Thursday, October 26, Mr Agyarko said it was unfortunate that such comments are coming from no less a person than Dr. Kwabena Donkor who has headed the ministry before.
He noted a contract of that nature could not have been terminated by one person without going through due process and approval by cabinet.
“I deem the utterances most unfortunate and irresponsible coming from a former Minister who ought to know that it is not within my power or province, or that of any Minister to unilaterally cancel or terminate a contract of this nature,” he indicated.
The judgment debt of $140 million, awarded to Singaporean firm Trafigura, due to the termination of a power purchase agreement with the Ghana Power Generating Company (GPGC) has put the Ghana High Commission building in the UK, the commissioner’s residence, the Ghana International Bank building, and other properties at risk.
Clarifying the instances leading to the review of the power purchase agreements, Mr. Agyarko stated that: “Upon assumption of office, the newly elected NPP government decided to take all the necessary actions to contain the cost of power generation and distribution in Ghana. It became necessary to review the implementation of the many Power Purchase Agreements (PPAs) because should all of them be implemented as originally scheduled, it would result in the production of excess energy with its attendant cost, which would worsen the financial situation of the power sector. The review was therefore to help cut back on losses that would be incurred.”
“An Inter-Ministerial Committee was set up under the chair of the Energy Commission to review the fiscal and legal implications of Power Purchase Agreements (PPAs) executed by the Electricity Company of Ghana (ECG). The eighteen (18) member committee was chaired by Dr. Alfred Ofosu Ahenkora, Executive Secretary of the Energy Commission. Its report was submitted on 5th April, 2019 under ref EC/MOE/17.
“The report was subsequently put before Cabinet for consideration and action. Cabinet directed that the report be further reviewed by the Attorney-General. This was done. Cabinet subsequently gave its approval for the recommendation of the report to be implemented,” he added.
