PDS/ECG Saga: We did due diligence-MiDA

The Millennium Development Authority (MiDA) has rejected assertions that it should be blamed for the current brouhaha surrounding the transfer of distribution business of Electricity Company of Ghana (ECG) to the Power Distribution Services Ghana Limited.

The PDS’s operations have been suspended by the Government of Ghana, pending investigations into fundamental and material breaches of the former’s obligation in the provision of Payment Securities (Demand Guarantees).

According to MiDA, each step of the ECG/PSP transaction process, prior to the handover of ECG’s distribution business and assets to PDS, was subjected to careful scrutiny and various stakeholder approvals.

“It is worthy to note that each step of the transaction process prior to the handover of assets to PDS required in-depth reviews of various pertinent issues, including submitted documents.

“In line with best practice in International Business Transactions, all documents submitted as part of the transaction were accepted on the basis of good faith and the presumption in law as to their validity,” MiDA said.

Energy Think Tank, Africa Centre for Energy Policy (ACEP) recently demanded the immediate interdiction of the leadership of the Millennium Development Authority (MiDA)-the implementing agency for Ghana’s Power Compact, following government’s suspension of the Power Distribution Services (PDS) over what it says were fundamental and material breaches in the payment of demand guarantees by the PDS.

ACEP blamed MiDA for shrouding the processes leading to the selection of PDS in secrecy.

But in a statement issued by MiDA Thursday, August 8, 2019, the authority said the allegations could not be true.

“It has taken MiDA some four years to work with all stakeholders, namely the Electricity Company of Ghana, Energy Commission, the Public Utility Regulatory Commission, Ministry of Finance, Ministry of Energy, the Office of the Attorney General and Ministry of Justice, the Government of Ghana, Parliament of the Republic of Ghana and the Millennium Challenge Corporation, in order to follow through all the processes towards the procurement of the services of a competent private sector operator to operate and manage the assets of ECG.

“This collaborative effort culminated in the birth of Power Distribution Services Ghana Limited (PDS). Every decision taken on the transaction and coordinated by MiDA was duly screened by all relevant stakeholders and received due authorisation and approval.

“Therefore, and contrary to widely circulated publications, discussions and allegations, MiDA has never acted against the supreme interest of Ghana. As an institution, MiDA works within stringent governance structures that meet international standards.

“These structures comprise oversight by the Board, the Government of Ghana and the Millennium Challenge Corporation. Every decision on the transaction was made within this governance structure,” the statement explained.

According to the MiDA, “while the current development is an unfortunate setback to the progress of the Concession, MiDA wishes to assure the public that it welcomes investigations into this matter.”

MiDA assured Ghanaians that it would continue to work transparently and with a high level of integrity to achieve results in the best interest of Ghana in order to sustain the goodwill and prospects Ghana derives from the implementation of the Millennium Challenge Account Programme.

By:Michael Creg Afful

The post PDS/ECG Saga: We did due diligence-MiDA appeared first on Oman 107.1 FM.

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