PDS case: Mahama fumes over closed $190m compact; blames Akufo-Addo,Bawumia

Former President John Dramani Mahama has expressed his disappointment at the closure of Ghana’s Millennium Challenge Compact by the United States, lamenting the efforts made during his administration to secure the Compact.

The National Democratic Congress (NDC)’s flagbearer described the closure as disheartening, emphasising the significant groundwork laid for its realisation.

The Millennium Challenge Corporation (MCC) confirmed the closure, stating that there are currently no plans to resume collaboration with Ghana. The Compact has been entirely shut down.

Ghana was set to receive critical funding of approximately $190 million in March 2019 to support infrastructure investments and the financial recovery of the energy sector.

However, the disbursement of funds was halted due to complications arising from a failed concession agreement involving Ghana’s Power Distribution Services (PDS).

The agreement is intended for PDS to manage the assets and staff of the Electricity Company of Ghana (ECG). The U.S. government suspended the transfer of funds, citing concerns about private sector involvement in the MCC’s Ghana Power Compact.

In response, Mahama criticised the Akufo-Addo government on Facebook, attributing the collapse of the deal to alleged corruption within the current administration.

He pledged that a future administration under his leadership would prioritise accountability and conduct a thorough investigation into the PDS scandal to hold those responsible accountable.

Additionally, Mahama vowed 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.