Mahama govt did no wrong – Bawa

Appointees of the erstwhile-Mahama administration are challenging a report by the Energy ministry suggesting that the Ameri deal was overpriced by 150 million dollars.

The 17-member committee put together by the Energy Minister Boakye Agyarko was chaired by Lawyer for Akufo-Addo in the 2012 election petition Philip Addison.

The report found technical, financial and legal lapses in the 510 Million Dollar power contract signed between Ameri Energy and the Ghana government.

The committee said although the contractor that built the plant charged 360 Million Dollars, Ameri forwarded a bill of 510 Million Dollars in the B.O.O.T agreement.

The committee said this is not equitable, informing its recommendation that Ameri should be invited for renegotiation of the 150 Million Dollar commission.

The Addison committee said if Ameri turns down the invitation, government should renounce the contract on the basis of fraud.

The committee accused the Mahama administration of failing to do due diligence before awarding the contract since it did not have any information on the shareholders and directors of AMERI and other third parties.

It also said AMERI does not have a license to operate the plants in Ghana which is contrary to section 11 and 25 of the Energy Commission Act.

The committee also questioned the penalties charged Ameri for failing to provide power at the agreed levels, insisting that these are punitive enough although government pays Ameri a monthly amount of 8.5 Million Dollars.

It also called for a review of tax exemptions granted AMERI and its third parties.

But in a conversation with Starr News, former Power Minister Dr. Kwabena Donkor said he did nothing fraudulent in the negotiation of the deal.

He added that he is currently consulting his lawyers on the report by the Energy Ministry.

Meanwhile, former Energy Consultant for the Energy Ministry Edward Bawa said the deal was the best for Ghana during that time since the country was in some sort of financial constraint.

“The government at that time did not have money to go for an outright purchase which could have been cheaper to the state, but we didn’t have the money so the only way was to get an investor…this was a deal which was approved by Parliament so it was not just at the discretion of the ministry of energy or power.”