The government of Ghana has suspended a concession agreement with the Power Distribution Company (PDS), a private company that took over power distribution in the country some few months ago. According to the government, the decision follows the detection of fundamental and material breaches of PDS’ obligation in the provision of payment securities (demand guarantees). The transaction discovered upon further due diligence.

"The Demand Guarantees were key prerequisites for the lease of assets on March 1st, 2019 to secure the assets that were transferred to the concessionaire," the statement said.

The government is conducting a full inquiry into the matter, and the outcome will inform the next course of action.

Steps were taken to ensure distribution, billing, and payment services continue to customers, the statement read. It added that the general public is assured this development will not interfere with the distribution of electricity services to customers.