A group of concerned Ghanaian citizens has formally petitioned the Office of the Special Prosecutor to investigate the alleged involvement of Vice President Dr. Mahamudu Bawumia in the Power Distribution Services (PDS) scandal.
The petition, dated September 3, 2024, accuses the Vice President of complicity in decisions that led to significant financial losses for the state and the eventual termination of the PDS concession agreement.
Background of the PDS Scandal
The controversy centers around the termination of the PDS concession agreement, which was intended to facilitate the private sector’s involvement in Ghana’s power distribution. The agreement, signed in 2019, involved the takeover of the Electricity Company of Ghana’s (ECG) assets by PDS for distribution in the southern part of the country. However, the deal was marred by a fraudulent insurance guarantee that was a key condition for the transfer of assets.
A forensic audit by the Millennium Challenge Corporation (MCC) revealed that PDS had provided a fabricated insurance guarantee, allegedly issued by Al Koot Insurance and Reinsurance, a Qatari company. The signatory to this guarantee was found to lack the authority to commit Al Koot, rendering the guarantee invalid. Despite this, the transfer of ECG assets to PDS proceeded, in breach of standard international practices and the conditions outlined in the agreement.
Allegations Against Vice President Bawumia
The petitioners allege that Vice President Bawumia chaired a meeting that led to the controversial decision to downgrade the required payment security from a Bank Guarantee to an Insurance Guarantee, despite earlier warnings from the Millennium Development Authority (MiDA) about the potential risks. The meeting, attended by the Chief of Staff, the Minister of Finance, and the Minister of Energy, is said to have effectively waived critical conditions precedent, allowing the flawed transaction to proceed.
The petitioners argue that this decision was instrumental in enabling PDS to unlawfully secure ECG assets, leading to financial losses for Ghana, including the forfeiture of $190 million in funds from the second tranche of the MCC compact. This money was intended to support long-term investments in Ghana’s energy sector.
Financial Losses and Demands
The petition highlights several financial losses incurred due to the PDS deal, including the withdrawal of approximately $4.25 million from ECG’s operating accounts to secure the fraudulent insurance guarantee. The petitioners claim that this withdrawal was unauthorized and illegal, given that PDS had no legitimate right over ECG’s assets at the time.
The petitioners have made several demands to the Office of the Special Prosecutor, including:
- An investigation into Vice President Bawumia’s role in the decision to downgrade the Bank Guarantee to an Insurance Guarantee.
- A probe into the circumstances that led to the variation of the conditions precedent, which facilitated the illegal transfer of ECG assets to PDS.
- The recovery of the $4.25 million withdrawn from ECG’s accounts to fund the fabricated insurance guarantee.
- A comprehensive investigation into all related matters that contributed to the termination of the PDS deal and the resultant cost to Ghanaian taxpayers.
Conclusion
The petitioners, who include Issifu Seidu Kudus Gbeadese, Elikem Kotoko, and Stephen Kwabena Attuh, have invoked their rights under the 1992 Constitution of Ghana and the Office of Special Prosecutor Act, 2017 (Act 959). They are calling on the Special Prosecutor to investigate what they describe as a significant case of corruption and to hold those responsible accountable.
The Office of the Special Prosecutor has not yet responded to the petition. However, the allegations against the Vice President are likely to add further scrutiny to the PDS scandal, which has already been a source of considerable controversy in Ghana’s political landscape.
Below is the petition:
Source: www.kumasimail.com
