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Business News of Tuesday, 6 July 2021


Government acted lawfully in terminating PDS-ECG consession – Commercial Court

Government's move to privatise ECG foiled over various 'illegalities' Government's move to privatise ECG foiled over various 'illegalities'

• PDS has lost its case at the Commercial court, against the ECG

• The case was led in court by Attorney-General, Godfred Dame, for the government

• PDS was supposed to help the ECG in the management of ECG’s assets, and to make the utility provider more efficient

A Commercial High Court in Accra has ruled that the Government of Ghana acted lawfully in the termination of an agreement with the Power Distribution Service (PDS) concession regarding its asset management for the Electricity Company of Ghana.

The development comes after PDS filed an application seeking the court to challenge the termination of its operational license with the ECG by government.

According to a Daily Graphic report, Justice Akua Sarpomaa Amoah, presiding over the case last Friday, July 2, 2021, threw out the application after she dismissed all the reliefs that the applicant sought, upholding the opposition to the application by Godfred Yeboah Dame, the Attorney-General.

Though the judge did not offer full reasons for her decision, the decision is expected to be contained in the Presiding Judge’s ruling filed at the court’s registry, the report said.

The Government of Ghana in October 2019 commenced processes to terminate the concession agreement between it and the Power Distribution Service (PDS) after its introduction in March the same year.

The move followed the announcement of the cancellation of the contract by the Minister of Finance, Ken Ofori-Atta after a meeting with officials of the Millennium Challenge Corporation (MCC) over various 'illegalities'.

The Electricity Company of Ghana (ECG) subsequently announced that it had assumed full control of the electricity distribution business in the southern part of the country.

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