PDS Scandal: Akufo-Addo’s and Bawumia’s “corrupt, cronyistic actions” cause of $190m compact loss – Mahama

John Dramani Mahama, former president of Ghana and flagbearer of the NDC has expressed dismay over the $190 million that was supposed to be used for private sector involvement in the distribution of energy under the US Millennium Compact.

The leader of the National Democratic Congress (NDC) said in a Facebook post that the $190 million US Millenium Compact was lost as a result of “corrupt, ‘yenkyendi’ and cronyistic governance practices” overseen by Vice President Dr. Mahamudu Bawumia and President Nana Addo Dankwa Akufo-Addo.

When reelected as president in the forthcoming general elections on December 7, the former president promised that he “will work diligently to enhance private sector efficiency in the electricity distribution system, including metering, revenue management, and fault response.”

John Mahama also promised to “ensure a thorough investigation of the PDS [Power Distribution Services] scandal to hold those involved accountable.

In a contentious takeover, the Ghanaian government granted Power Distribution Services (PDS) Ghana Limited a 25-year concession to run the Electricity Company of Ghana (ECG).

The agreement was signed in March 2019, however due to fraud allegations, it was put on hold in July 2019.

As part of the second tranche of the MMC power compact, the Ghanaian government was about to receive critical funds in March 2019 totaling around $190 million, which was intended to support the long-term sustainability of related infrastructure developments and the financial recovery of the energy sector.

Unfortunately, the US government stopped the transfer of the funds because of the cancelled concession agreement with Ghana’s Power Distribution Services (PDS), which called for PDS to take over the operation and management of the employees and assets of the Electricity Company of Ghana (ECG). They claimed that the US government’s Ghana Power Compact prioritized private sector participation.

Read the full statement below;

Dear fellow Ghanaians,

It’s disheartening to learn that the $190 million we negotiated for private sector participation in electricity distribution under the US Millennium Compact has been lost due to Nana Addo and Bawumia’s corrupt, ‘yenkyendi’, and cronyistic governance practices.

This is unacceptable, and we deserve better as a people.

As I gear up to assume the presidency in January 2025, thanks to your votes and endorsement in this year’s election, I want to assure you that I will work diligently to enhance private sector efficiency in the electricity distribution system, including metering, revenue management, and fault response.

My administration will prioritise accountability and ensure a thorough investigation of the PDS scandal to hold those involved accountable.

We can work together to build a brighter future for Ghana’s power sector that benefits citizens and businesses.

Let’s stand together, fight against corruption and cronyism, and work towards building the Ghana we want.

#LetsBuildGhanaTogether

#Mahama4Change2024