PDS Scandal Reignites as BNI Grabs Four Over Suspected ECG Cash Transfers
Fresh arrests revive scrutiny of collapsed power concession as investigators probe movement of millions linked to ECG funds.
- 4 suspects arrested over alleged ECG fund transfers
- Arrests linked to renewed probe into PDS operations
- PDS deal collapsed over forged financial guarantees
The Bureau of National Intelligence has arrested four individuals in connection with the controversial Power Distribution Services (PDS) deal, over the suspected transfer of funds believed to belong to the Electricity Company of Ghana (ECG).
The Minister of State in charge of Communications, Felix Ofosu Kwakye, disclosed that the arrests were made last week as part of ongoing investigations into the movement of large sums of money.
In a Facebook update titled “Oral Update,” he identified the suspects as Philip Ayensu, Viraj Phat, Sophia Korkor, and Justice Menka-Premoh. All four have since been granted bail pending further investigations.
Background to the PDS Deal:
PDS assumed operational control of ECG on March 1, 2019, under a 20-year concession agreement supported by the Millennium Challenge Corporation as part of the Ghana Power Compact between Ghana and the United States.
However, the agreement collapsed within months after the government uncovered that key financial guarantees—purportedly issued by Al Koot Insurance and Reinsurance Company—were fraudulent.
Courts in Qatar, including the Court of Cassation, later confirmed the guarantees were forged.
Financial Fallout and Legal Battle:
The termination of the deal came at a steep cost, with Ghana losing approximately $190 million in funding from the Millennium Challenge Corporation.
PDS subsequently initiated arbitration proceedings in London, seeking compensation and challenging the contract termination. But in November 2025, the London Court of International Arbitration dismissed all claims, ruling that the government acted lawfully due to the fraudulent guarantees.
Ongoing Concerns:
Despite the ruling, lingering concerns remain over how ECG revenues were handled during the concession period—issues the latest BNI investigation is expected to unravel.
