The President, Nana Addo Dankwa Akufo-Addo, has relieved the Minister for Energy, Boakye Agyarko from office.
The action by the President is with immediate effect, according to a statement signed by the Director of Communications at the Presidency, Eugene Arhin.
The Minister for Lands and Natural Resources, John Peter Amewu has been appointed to temporarily occupy that position.
The novation and amendment agreement was seeking to buy out the deal Ameri Energy had with the government of Ghana under President John Mahama and handed over to a third party Mytilineos for 15 years. Ghana would have ended up paying over Ghc1 billion under the new arrangement.
The joint committee on Finance and Energy of Parliament rejected the new deal because it had no signatures from the Attorney General and Finance minister.
Under the new agreement, Mytilineos International Trading Company, will take over the management of the AMERI power plant for 15 years.
The new company has offered to pay AMERI an amount of $52,160,560, with the government paying the remaining $39 million to the Dubai-based AMERI Energy to wash its hands off the deal entirely.
The new deal has been described by the Minority in Parliament and other energy think tanks including African Centre for Energy Policy (ACEP) as “stinky” and “rip-off.”
On Monday, the Senior Staff Association of the Volta River Authority (VRA) joined calls for the Minister’s removal over the controversial AMERI novation and amendment deal.
According to the VRA staff, claims by the Energy Ministry that government had saved the country over 400 million Ghana cedis in the new deal were complete lies.
Chairman of the senior Staff Association Cephas Duse addressing the media Monday said Mr. Agyarko has exhibited financial recklessness and must be given the boot from office or resign.
“We think that by the current deal, the minister has exhibited financial recklessness with intent to assist a foreign company to milk the state. We therefore call on him to resign honourably and save the nation and the government further disgrace and embarrassment.
“We plead with the President to sack him if he fails to resign.”
Their call followed a similar one by the Chamber of Petroleum Consumers Ghana who also demanded that the President immediately sacks Mr. Agyarko for deceiving the nation.