Three concerned Ghanaian citizens, Issifu Seidu Kudus Gbeadese, Elikem Kotoko, and Stephen Kwabena Attuh, have formally petitioned the Office of the Special Prosecutor (OSP) to investigate Vice President Dr Mahamudu Bawumia’s role in the controversial Power Distribution Services (PDS) deal, which resulted in Ghana losing $519 million in Millennium Challenge Corporation (MCC) compact funds.
The petitioners expressed deep concern over what they perceived as the Vice President’s potential complicity in the deal, which they argued led to significant financial losses for the country.
“Pursuant to section 3(1)(a)(b)(c) and (d) of the Office of Special Prosecutor Act, 2017(Act 959), we request the Special Prosecutor to investigate the complicity or otherwise of the Vice President of the Republic of Ghana, H.E. Dr. Mahamudu Bawumia and the role he played at the meeting he chaired, which authorized MiDA to accept the downgrade of the required Bank Guarantee to Insurance Guarantee per Conditions Precedents numbers 24 and 31 of the PDS agreement”.
Three Ghanaian citizens; Issifu Seidu Kudus Gbeadese, Elikem Kotoko, and Stephen Kwabena Attuh
The petitioners strongly argued that the decision of the Vice President to change the required Bank Guarantee to an Insurance Guarantee during the negotiation of the PDS transaction was instrumental in the subsequent challenges which led to the termination of the deal.
Examination of the Conditions Precedent
The petitioners also called for an investigation into the circumstances that led to the modification of the conditions precedent into conditions subsequent.
This alteration, they argued, was a critical factor that facilitated the transfer of ECG’s assets to PDS, a move, they pointed out ultimately resulted in the loss of the second tranche of the MCC compact funds, amounting to $519 million.
The three individuals demanded why such a decision was made and whether it was in the best interest of the country.
Recovery of Taxpayer Funds
Additionally, the petitioners, including Issifu Seidu Kudus Gbeadese, Elikem Kotoko, and Stephen Kwabena Attuh requested the OSP to recover approximately $54.25 million of taxpayer money, which they allege was unlawfully withdrawn from the ECG operating accounts by PDS to secure a fabricated Insurance Guarantee.
The petitioners contended that at the time of the withdrawal, PDS had no legitimate right over the assets of ECG and, therefore, lacked the authority to sanction such payments.
The petitioners concluded by urging the OSP to extend its investigation to cover any other related matters that may have contributed to the termination of the PDS deal, including the broader financial implications for Ghanaian taxpayers.
This petition marks a significant step in the quest for accountability in the PDS deal, which has been the subject of intense public scrutiny since its inception.
The PDS agreement initially intended to enhance the efficiency of the Electricity Company of Ghana (ECG), was marred by allegations of fraud and mismanagement, ultimately leading to its termination .
In March 2019, Ghana was on the verge of receiving crucial funding of some $190 million aimed at the long-term sustainability of related infrastructure investments and financial recovery of the energy sector as part of a second tranche of the MCC power compact.
However, owing to a botched 20-year concession agreement with Ghana’s Power Distribution Services (PDS), where PDS was to assume the operation and management of the staff and assets of the Electricity Company of Ghana (ECG), the US government halted the transfer of the funds, stating that private sector participation was a central reform under MCC’s Ghana Power Compact.
READ ALSO: NewGold ETF Gains Over 74% YTD Despite Minor Price Dip on GSE
