The US under the millennium challenge fund made money available for privatisation of aspects of the energy sector. The government privatised the electricity distribution sector under PDS but later found, before the deadline for producing sureties, that PDS and its component parts were fraudulent.
Two questions
– Why can’t GOG rescind the contract if promises made by PDS could not be satisfied? E.g. a so-called insurance company not capitalised enough to insure PDS under the contract
– Why can’t GOG award the contract to another company deemed more resourced and financially secure?
I ask these questions because after exhaustive reading on this topic recently I am convinced that it is within the legal right of GOG to terminate PDS and select another partner for ECG. Yet the US says GOG has not upheld the sanctity of the contract the GOG deemed breached by PDS. Your opinion would be appreciated but please note I confine myself only to the legality of the actions of GOG.
Editor