Some Ghanaians have waded into the controversial electricity distribution saga, involving the government, Power Distribution Services (PDS) and the Millennium Challenge Corporation (MCC), with a call on government to shun the threat from the MCC.
The MCC of the United States of America (USA), in a letter dated October 18, 2019, and signed by Kyeh Kim, ordered the government of Ghana to reinstate PDS, or suffer consequences.
Reacting to this order on the social media, which has become a major forum for debating national issues, most of the posters warned the government not to succumb to the dictates of the MCC, since Ghana is a sovereign state.
Since we do not have the permission of the posters to use their names, we have given them pseudo names.
A poster, James Owiredu, argued that Ghana is worth more than what the MCC can give to the country and that the sovereignty of the state could not be sold under any circumstances.
Another commentator, Alex Mensah, held that Ghana is a sovereign nation and that NO country should be allowed to dictate to her.
Evans Awelime quizzed whether the MCC supports corruption and fraud, since they are asking government to bring back a company found to have defrauded the nation.
Dela Coffie of the National Democratic Congress party asked; “Can we please call the bluff of the neocolonialists and go ahead with the abrogation of the deal?”.
The MCC letter, addressed to the Minister for Finance, Ken Ofori-Atta, gave government a twelve-day ultimatum to bring back PDS, or lose benefits under the Millennium Challenge Compact, signed in 2014.
The deadline, which falls on October 30 this year, may see Ghana losing some US$190 million under the Compact II and possibly not be considered for the Compact III.
In the letter sighted by The Chronicle, the MCC wants government of Ghana to “formally announce the reinstatement of PDS’ concession rights under the transaction agreement.
“Lift the suspension of the LAA (Lease and Assignment Agreement), BSA (Bulk Supply Agreement) and GSA (Government Support Agreement),” as well as “cause the Energy Commission to lift the suspension of PDS’ Retail Supply Licenses,” all must be done by October 30.
According to the same letter, if government complies to what has been stated above, MCC’s corresponding action will be to “release to MiDA (Millennium Development Authority) the tranche II funding and permit such funding to be committed to approved contracts under the Compact Multi-Year Financial Plan.
“Authorise the resumption of activities toward the development of a regional compact involving Ghana,” the letter signed by Kyeh Kim, Principal Deputy Vice President, Department of Compact Operations added.
Meanwhile, The Chronicle carried on its front page last Monday that the government, through the Minister for Finance, Ken Ofori-Atta, has shown PDS the exit from managing electricity distribution in the country, following a breach in the acquisition of a bank guarantee.
The story said the decision to terminate the deal had been communicated to the Chief Executive Officer (CEO) of the MCC in September by President Akufo-Addo on the sidelines of this year’s United Nations General Assembly in New York, United States of America.
The story further stated that, government has recommended to MCC/MiDA to adopt a restricted tender process to replace PDS, in view of the limited time (approximately two years) until the expiration of the Compact II Programme.