PDS Scandal: We Are Taking Steps to Recover $190M Lost- Energy Ministry

The government has announced plans to seek remedies for the losses incurred in the deal between Power Distribution Services (PDS) Ghana Limited and the Electricity Company of Ghana (ECG) under the U.S. Millennium Challenge Corporation (MCC) compact funding in 2019.

The Ministry of Energy, in a statement, confirmed that Ghana lost $190 million.

“The Ministry assures the public that all necessary legal and administrative steps are being taken to recover any amounts due to ECG and the State as a result of this process.”

This follows the final award rendered by the London Court of International Arbitration (LCIA) in the suit filed by PDS arising from the termination of the concession agreement with ECG.

After a full hearing, the Arbitral Tribunal, in its final award, dismissed all claims sought by PDS.

The Tribunal further found that the Demand Guarantees issued in respect of the transaction were void ab initio, invalid from the outset and consequently held that the Government of Ghana was entitled to terminate the concession agreement.

Reacting to the development, the Energy Ministry opined that the situation should never have arisen in the first place.

“The poor decisions made during the selection and approval process of the concessionaire, which led to the formation of Power Distribution Services (PDS) under the previous administration, directly contributed to the current outcome.”

The Ministry reaffirmed its commitment to accountability, transparency, and sustainable energy reforms.

Story by Hajara Fuseini

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