Energy Minister, Peter Amewu has confirmed to TV3 that some documents presented by Power Distribution Services for the ECG concession agreement were fraudulently done.
Government on Tuesday, July 30, 2019 suspended the agreement that handed over the management and operations of ECG to PDS effective March 1, 2019.
3news.com was earlier informed by reliable sources close to the deal that the officer who executed the Demand Guarantees (Lease Payment Security and BSA Payment Security) submitted by PDS was not authorized.
The commercial insurer and reinsurer, Al Koot, has since written to the government of Ghana that the agreement is null and void.
“As a result of some material evidence that seems to conclude that the payment of the security which ought to have come from PDS was not well executed, therefore we considered as fraudulently done,” Mr. Amewu confirmed in an exclusive interview with TV3’s Paa Kwesi Asare on Wednesday.
He said the official who authored the documents has been suspended by Al Koot.
“Let’s say that the letter which is coming from Al Koot claiming that the payment security is fraudulently done and that they have nothing to do with it, and the officer responsible for that has already been suspended and therefore they are taking the issue seriously.”
As a result of the revelation, he said, government felt it was important to hold on with the country’s assets transferred to PDS.
“With the detection it is proper government took that action,” he explained rationale behind the suspension.
He credited government for its “due diligence” which established the supposed fraudulent act, rejecting criticism that government did a poor job prior to the award of the contract to PDS.
Though the minister said it would be “very difficult” for him to “quantify and justify” the cost that may arise if the agreement is abrogated, he admitted PDS had incurred some cost after the contract was awarded.
He was however certain “government has not put in any amount of money”.
Meanwhile, the Energy Minister said the President, Nana Akufo-Addo has been briefed on the development so “he is aware”.
By Isaac Essel | 3news.com | Ghana