The Electricity Company of Ghana (ECG) has handed over almost all its operations back to the Power Distribution Services days after the government suspended the concession agreement with the latter.

It is unclear the reasons for the sudden u-turn. ECG was recently put back in charge of power distribution in the country after the suspension of the PDS contract.

The development comes at a time the Government of Ghana has sent a delegation to the Qatar to probe what the government described as fraud in the concession arrangement.

“The Government of Ghana through the Ministry of Finance and the Electricity Company of Ghana (ECG) Ltd. has suspended the concession agreement with Power Distribution Services (PDS) Ghana Limited with immediate effect.

“The decision follows the detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which have been discovered upon further due diligence,” a government statement announcing the suspension of PDS operations said.