Philip Ayesu, PDS Board Chairman The embattled power supply company, Power Distribution Services (PDS) Ghana Limited, has dismissed any foul play in its contract to distribute power in some parts of the country.
PDS – a local and foreign consortium – in March 2019 took over power distribution functions of the Electricity Company of Ghana (ECG) under a concession deal that would allow it to operate ECG facilities for power distribution for the next 20 years.
However, four months into the agreement, Ghana government last week suddenly applied brake on the concession agreement, suspending the entire transaction for what it called “detection of fundamental and material breaches of PDS’s obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which has been discovered upon further due diligence.”
PDS says it’s co-operating with the relevant agencies over the brouhaha saying that the transaction was above board.
The company threw gauntlet to any individual with adverse information to come out.
PDS Board Chairman, Philip Ayesu, told DAILY GUIDE on Sunday that the outcome of the investigations commissioned by the government would clear them of any wrongdoing.
Mr Ayesu was unfazed about the hullaballoo that has greeted the transaction, saying the PDS has been following the terms of the contract signed to operate ECG facilities.
He ruled out claims that the PDS played a fast one on the government with the alleged breaches in the demand guarantee (insurance cover).
According to him, PDS engaged its bankers – Cal Bank and Donewell Insurance – to facilitate the insurance cover to the Qatar-based insurance company – Al Koot – for reinsurance.
As far as the PDS board chairman was concerned, everything was done in a transparent manner with the Millennium Development Authority (MiDA) and International Finance Corporation (IFC), the power compact transaction advisors, satisfied with process.
He said if the Qatari insurance company has problems with the transaction, it should deal with its brokers – Jo Australia Reinsurance Brokers – based in Jordan.A document sighted by DAILY GUIDE acknowledges the execution of the demand guarantee.“The reinsurer indicated below (Al Koot) has executed and delivered this Guarantee for the purpose of accepting rights granted to it and the obligation imposed on it by this guarantee, including without limitation, the rights and obligations contained in Sections 2 and 3 thereof,” the document believed to be the contract with Al Koot indicated.It was signed by Yahya Al Nouri, Reinsurance Manager and witnessed by Fadi Danghouth, […]
