You’ll account, Mahama tells Akufo-Addo, Bawumia as Ghana loses $190m power deal to PDS scandal

Atingane Adumbire

4 months ago

Former President John Mahama has reacted to news that the Millenium Challenge Corporation has cancelled the $190 million support for Ghana under the US Millennium Compact. The contract was signed during Mahama’s Presidency to bring in private sector participation in the electricity distribution.

However, the Power Distribution Services (PDS) scandal has left the MCC with no option but to walk away from the corridors of corruption. A Joy News report said the MCC has confirmed it has no “immediate plans to work again in Ghana,” spelling doom for the deal.

As part of the deal, Ghana was due to receive $190m in 2019 but the failed 20-year takeover of the ECG by PDS pushed everything to a standstill.

Currently, Ghana’s power sector is on life support with debts to Independent Power Producers piling up. The debt is at least $1.5 billion, a situation that is a contributory factor to the country’s current power crisis.

Reacting to the news, John Mahama who is leading the NDC to the upcoming general elections said it was sad to lose the deal due to “Nana Addo and Bawumia’s corrupt” governance. He said if he assumes office in 2025, he will ensure efficiency in the sector.

Mahama also promised to “prioritize accountability” and conduct a “thorough investigation of the PDS scandal.”

See the full statement by John Mahama

Dear fellow Ghanaians,

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.

My administration will prioritise accountability and ensure a thorough investigation of the PDS scandal to hold those involved accountable.

We can work together to build a brighter future for Ghana’s power sector that benefits citizens and businesses.

Let’s stand together, fight against corruption and cronyism, and work towards building the Ghana we want.