PDS paid $12.2m for ECG takeover - Documents reveal
- Government has suspended the PDS concession agreement because of suspicion that the guarantees were fake
- Documents secured by Joy News reveals that PDS paid the required $12.2 million premium to secure guarantee to finalise the takeover
- Joy News understands that once Cal Bank received the payment from PDS it worked with Donewell Insurance to finance the deal
Documents secured by Joy News reveals that Power Distribution Services (PDS) paid the required $12.2 million premium to secure guarantee to complete the takeover the Electricity Company of Ghana (ECG).
The documents however revealed that the money never got to the reinsurers of the deal in Qatar.
In a letter dated February 21, 2019, Cal Bank wrote to the Millenium Development Authority (MiDA) to alert them of receipt of an amount of $8 million as a deposit for the payment of the charges for the issuance of the demand guarantees.
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In May, the final installment of $4.25 million was also paid from the PDS account at Cal Bank.
According to a Joy News report, once Cal Bank received the payment from PDS it worked with Donewell Insurance to finance the deal.
Donewell Insurance also engaged Jordanian based broker Jo Australia Reinsurance Brokers who were tasked with the job of finally making the required payments to secure the final demand guarantees from Al Koot, a firm based in Qatar.
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On July 16, 2019, Al Koot through its Chief Officer General Insurance, Osman Hag Musa, wrote to ECG alerting them about a situation of fraud in which the initial guarantee submitted was allegedly forged by an employee of the company.
Al Koot however in another letter dated Wednesday, July 31, 2019 wrote to the insurance brokers notifying them of the formal cancellation of the insurance coverage they had guaranteed.
They explained in that letter that they were cancelling the cover because the broker had not paid the premium.
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Source: YEN.com.gh
