Cancel ‘scandalous’ PDS contract – Omane Boamah barks at gov’t

Cancel ‘scandalous’ PDS contract – Omane Boamah barks at gov’t

Former Communications Minister, Edward Omane Boamah, has made a second call to government to cancel the concessionaire agreement with Power Distribution Services (PDS).

“Abrogate the ECG-PDS scandal!” he growled on his Facebook page on Monday.

The former Spokesperson for ex-President John Mahama last month said that state-ownership of the power sector and other key utilities was better than private ownership.

In short tweet, he said in August that the controversy that has hit the concessionaire agreement between PDS and the government is proof that state ownership of the Electricity Company of Ghana (ECG) is better.

“The PDS scandal is another testimony to the glory of both state ownership and management,” he stated in the tweet.

The government on July 30 announced the suspension of the contract with PDS, barely six months after the company took over from ECG.

Government suspended PDS’ management of electricity alleging that the private company has hatched a plan to deceive the state.

Government has explained that documents presented by PDS as a guarantee for the takeover of the state-owned power retailing and distribution company were forged.

An independent forensic probe into allegations fraud has revealed there is no evidence to suggest any of the entities involved in the deal conspired to defraud the state.

Documents indicate that the private auditor hired by the Millennium Development Authority (MiDA) did not find any information to suggest that either PDS, Cal Bank, Donewell and or personnel from MiDA committed or conspired to commit fraud or other malfeasance, in relation to the demand guarantees.

Also, a government delegation sent to Qatar to verify the $12.25 million demand guarantee posted by PDS found Qatari insurance firm Al-Koot, did not issue a valid guarantee on behalf of PDS.

The five-member committee tasked to look into the matter also found the insurance officer who supposedly forged the signature of the Chief General Insurance Officer at Al-Koot had been suspended and may face prosecution.

But Mr Omane Boamah believes the deal should be totally scrapped.

In his latest comment on the controversial deal, he states: “America exports democracy and privatisation, which is not bad for them, so between cancelling the fraudulent PDS-ECG agreement and a different option, they may support the former. Let’s think about Ghana’s interest.”

“We can opt for an IPO, float preference shares, decentralize the management of ECG etc, etc. The options are not limited. The status quo is pure crony capitalism and state capture,” he said in his Facebook post.

 

Source: myjoyonline.com

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