Former President of Ghana and flagbearer for the National Democratic Congress (NDC), John Dramani Mahama, has pledged a comprehensive investigation into the issues surrounding the failed Power Distribution Services (PDS) deal. This assurance comes in response to reports indicating that Ghana has forfeited a substantial sum of $190 million from the Millennium Challenge Compact (MMC), intended to bolster long-term infrastructure investments and facilitate financial recovery within the energy sector.
Attributing the loss to what he termed as the current government’s corrupt and cronyistic governance practices, Mahama emphasized the imperative of accountability in addressing the repercussions of the PDS scandal. He asserted, “My administration will prioritize accountability and ensure a thorough investigation of the PDS scandal to hold those involved accountable.”
Expressing dismay over the missed opportunity for Ghana’s power sector, Mahama labeled the situation as “unacceptable,” underscoring the nation’s entitlement to better governance.
Background Context:
The MMC power compact, signed in March 2019, earmarked $190 million for Ghana, with the aim of catalyzing reforms within the energy sector. The fund was poised to facilitate significant improvements, with a particular focus on private sector involvement in the sector’s rejuvenation.
However, the envisaged progress was derailed by the collapse of a concession agreement with Power Distribution Services (PDS). The United States government suspended the transfer of funds, citing the fundamental premise of private sector engagement underpinning the compact. PDS had been slated to assume operational control and management responsibilities over the assets and personnel of the Electricity Company of Ghana (ECG).
In the wake of this setback, Mahama’s commitment to investigating the PDS debacle underscores his determination to address the root causes of the missed opportunity and to restore accountability within Ghana’s governance framework.
Source: GhanaFeed.Com
