PDS Linked Individuals Arrested Amid ECG Funds Transfer Probe

Four individuals connected to the former Power Distribution Services (PDS) were arrested last week by the Bureau of National Intelligence (BNI) in connection with suspected illicit transfers of funds believed to belong to the Electricity Company of Ghana (ECG). Minister of State for Communications, Felix Ofosu Kwakye, revealed the arrests, stating that investigations into the matter are ongoing. The arrested individuals, identified as Philip Ayensu, Viraj Phat, Sophia Korkor, and Justice Menka-Premoh, have since been granted bail.

Background of the PDS Concession

The PDS concession agreement, which commenced on March 1, 2019, saw PDS take over the operational management of ECG under a 20-year term. This agreement was a critical component of the Millennium Challenge Compact between the Government of Ghana and the United States’ Millennium Challenge Corporation (MCC).

However, the concession was short-lived, collapsing within months. Government investigations uncovered that key payment guarantees, allegedly issued by Qatar-based Al Koot Insurance and Reinsurance Company, were fraudulent. Subsequent legal proceedings in Qatar, including a ruling by the Court of Cassation, confirmed the forgery of these guarantees.

The termination of the PDS deal resulted in significant financial repercussions for Ghana, leading to the loss of approximately $190 million in compact funding from the MCC.

Arbitration and Lingering Concerns

Following the termination, PDS initiated arbitration proceedings in London, seeking damages and a declaration that the termination was wrongful. In November 2025, the London Court of International Arbitration dismissed all of PDS’s claims. The court ruled that the discovery of fraudulent guarantees provided sufficient justification for the Ghanaian government’s decision to terminate the contract.

Despite the arbitration outcome, questions have persisted regarding the financial management and handling of ECG revenues during the period PDS operated the power distribution services. The recent arrests suggest that these lingering concerns are now a focal point of the BNI’s investigation.