PDS Scandal: $190m is the tip of the iceberg – Ben Boakye on compact loss
PDS Scandal: $190m is the tip of the iceberg – Ben Boakye on compact loss
The Executive Director of the African Centre for Energy Policy (ACEP), Ben Boakye, has blamed the loss of $190 million due to the PDS Scandal on political manipulations under the operations of the Millenium Development Authority (MiDA).
In a post on his X platform, Mr Boakye said “MiDA was a significant part of the problem; Ghana had to lose so much when it decided to subsume operational decisions under overt and covert political manipulation. $192m is the tip of the iceberg. The totality of our loss is what we see in the power sector today; a mess.”
He was reacting to reports of the closure of Ghana’s Millennium Challenge Compact by the United States.
The Millennium Challenge Corporation (MCC) stated that there are no immediate plans to resume collaboration with Ghana.
In March 2019, Ghana was poised to receive critical funding amounting to approximately $190 million aimed at bolstering the long-term sustainability of infrastructure investments and facilitating the financial recovery of the energy sector. This funding was part of the second tranche of the MCC power compact.
However, the disbursement of funds was halted due to complications arising from a failed 20-year concession agreement involving Ghana’s Power Distribution Services (PDS).
The agreement was intended for PDS to assume the operation and management of the assets and staff of the Electricity Company of Ghana (ECG).
The U.S. government suspended the transfer of funds, citing the central role of private sector participation in the MCC’s Ghana Power Compact.
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