Philip Ayesu
The Bureau of National Intelligence (BNI) last week arrested four individuals linked to Power Distribution Services (PDS) over the alleged transfer of funds suspected to belong to the Electricity Company of Ghana (ECG).
Minister of Government Communications, Felix Kwakye Ofosu, announced this in a Facebook post titled “Oral Update.” He identified the individuals as Philip Ayesu, Viraj Phat, Sophia Korkor, and Justice Menka-Premoh.
“The Bureau of National Intelligence arrested the following persons affiliated to PDS last week as part of investigations into the transfer of large sums of money believed to belong to ECG. The quartet has since been granted bail pending further investigations,” Mr. Kwakye Ofosu wrote.
According to Mr. Kwakye Ofosu, although the four suspects have been granted bail, the arrests were carried out under the government’s anti-corruption initiative, Operation Recover All Loot (ORAL), introduced to recover suspected misappropriated state resources.
Background
PDS took over the operations of ECG on March 1, 2019, under a 20-year concession agreement backed by the Millennium Challenge Compact between the Government of Ghana and the United States’ Millennium Challenge Corporation.
However, the deal collapsed within months after government investigations found that key payment guarantees reportedly issued by Qatar-based Al Koot Insurance and Reinsurance Company were fraudulent.
Courts in Qatar, including the Court of Cassation, later upheld findings that the guarantees were forged, resulting in the termination of the agreement and Ghana losing about $190 million in compact funding from the Millennium Challenge Corporation.
PDS subsequently initiated arbitration proceedings in London, seeking damages and a declaration of wrongful termination.
In November 2025, however, the London Court of International Arbitration dismissed all the company’s claims, ruling that the fraudulent guarantees justified the government’s decision.
Despite that ruling, concerns have persisted over how ECG revenues were handled during the concession period, culminating in the latest investigation by the Bureau of National Intelligence.
Despite the government’s claims of fraud, the United States, in a statement from its Embassy in Ghana, maintained that the agreement was valid and expressed dissatisfaction with the government’s decision.
In a related development, the General Secretary of the Public Utilities Workers’ Union (PUWU), Mr. Timothy Nyame, in a May Day address titled “Unity and Resilience: Defending Public Utilities and Workers’ Rights,” said workers would resist any plans to place the state power distributor under private control.
He indicated that any attempt to introduce further private sector participation in ECG would breach assurances previously given by President John Mahama that the company would remain under state management.
“We will resist every attempt by government to privatise ECG, in part or whole, or to further cede its operations to private interests. Through storms, system challenges, and long hours, you have ensured reliable electricity supply to homes, hospitals, schools, and industries. Your work is the backbone of Ghana’s development,” he added.
By Ebenezer K. Amponsah