Mahama dismayed at loss of $190m due to PDS scandal; vows to prosecute culprits

Former President John Dramani Mahama has expressed his dismay over the closure of Ghana’s Millennium Challenge Compact by the United States.

Mr Mahama lamented the decision, highlighting the considerable efforts made by his administration to secure the Compact.
The National Democratic Congress (NDC)’s flagbearer described the closure as disheartening, considering the substantial groundwork laid to ensure its realisation.

Confirming the closure, the Millennium Challenge Corporation (MCC) informed JoyNews that there are no immediate plans to resume collaboration with Ghana. The Compact has been entirely shut down.

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.

In response to these developments, Mr Mahama took to Facebook on Friday, May 10, to criticize the Akufo-Addo government. He attributed the collapse of the deal to alleged corrupt practices within the current administration.

Mr Mahama pledged that a future administration under his leadership, following the 2024 election, would prioritize accountability.

He vowed to conduct a thorough investigation into the PDS scandal to hold those responsible accountable for their actions.

Additionally, he pledged to implement measures to enhance private sector efficiency in the electricity distribution system, focusing on areas such as metering, revenue management, and fault response.

“It’s disheartening to learn that the $190 million we negotiated for private sector participation in electricity distribution under the US Millennium Compact has been lost due to Nana Addo and Bawumia’s corrupt, ‘yenkyendi’, and cronyistic governance practices.”

“This is unacceptable, and we deserve better as a people.”

“As I gear up to assume the presidency in January 2025, thanks to your votes and endorsement in this year’s election, I want to assure you that I will work diligently to enhance private sector efficiency in the electricity distribution system, including metering, revenue management, and fault response,” he posted.

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