The Government has announced immediate suspension of the concession agreement with Power Distribution Services (PDS) Ghana Limited.
A press statement signed by the Information Minister, Mr. Kojo Oppong Nkrumah, said the decision followed the detection of “fundamental and material breaches” of the company’s obligation in the provision of Payment Securities (Demand Guarantees) for the transaction.
The breaches, it added, were discovered upon further due diligence.
The Demand Guarantees were key prerequisites for the lease of assets on March 01, this year, to secure the assets that were transferred to PDS – the concessionaire.
The statement said full inquiry into the matter was being conducted and that the outcome would inform the government’s next course of action.
Steps had been taken to make sure power distribution, billing and payment services continued uninterrupted.
It gave the assurance that the development was not going to interfere with the distribution of electricity services to consumers.