Return Agyapa deal to Parliament – Prez. Akufo-Addo orders

• Posted on November 3, 2020November 3, 2020
• by Nana Kwesi Coomson
• Comment

President Akufo-Addo has reportedly directed Finance Minister Ken Ofori-Atta to go back to Parliament on the Agyapa Royalties deal for further assessment.

Asaaseradio.com quoted a source from the Office of the President saying the President wanted further scrutiny from the legislature, particularly the aspects of the deal pertaining to the relationship, investment and allocation of the agreement.

The President has also advised the Finance Minister to take into consideration all the feedback he has received from stakeholder engagements with civil society organisations, faith-based organisations and other interest groups.

Main Arrangement

The government decided to consolidate all the country’s potential mineral income in a fund and largely managed by a special purpose vehicle (SPV) called Agyapa Royalties, but it triggered heated debate over the arrangement.

It was being done through the establishment of Agyapa Minerals Limited which was 100 per cent owned by Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978), which was also 100 per cent owned by government.

Amidu Assessment

Office of the Special Prosecutor (OSP) announced yesterday that the corruption risk assessment on the controversial Agyapa Royalties deal had been completed.

A statement signed by the Special Prosecutor (SP), Martin Amidu, said his office had communicated the conclusions and observations on the deal to President Akufo-Addo and Mr. Ofori-Atta some two weeks ago.

The statement noted that this was done as a matter of courtesy before making the public announcement; adding “the analysis of the risk of corruption and anti-corruption assessment was completed and signed by the SP on October 15, 2020.”

“Two weeks is more than too long for this office to continue withholding the announcement of the completion of its 64-page report to the public. It is important that this office has the freedom to discharge its anti-corruption mandate and keep the public informed.

“I have, therefore, decided to bring the facts of the conclusion of the anti-corruption assessment of the Agyapa Royalties Transactions by this office to the attention of the public and to avoid the continued speculations on this matter,” the statement intimated.

The SP, on September 10, 2020, invoked its mandate pursuant to Sections 2(c), 4, 29, 69, and 73 of the Office of the Special Prosecutor Act 2017 (Act 959) and Regulation 31 of the office (L.I.2374) enjoining the office to execute the object of prevention of corruption in addition to investigating and prosecuting corruption-related offences.

“This office, therefore, decided to make a request to Parliament to be provided with information and documents related to or in connection with the approval by Parliament of the Agyapa Royalties Transactions on August 14, 2020 to assist this office execute its prevention of corruption mandate,” the statement noted.

Stakeholder Consultation

On September 9, 2020 the Ministry of Finance held separate virtual meetings with the Social Partnership Council (SPC) and the leadership of faith-based organisations (FBOs) as part of stakeholder engagement and consultation to deepen understanding on the Agyapa Minerals Royalty deal.

It followed concern raised by some civil society organisations (CSOs) for the government to place the citizen at the centre of policymaking considerations, not just as a target, but also as an agent.

The SPC is made up of the labour unions, Ghana Employers Association and government, represented by the Ministries of Finance and Employment and Labour Relations, while the FBOs include the Catholic Bishops Conference, Christian Council of Ghana, Ghana Pentecostal and Charismatic Council, National Associations of Charismatic and Christian Churches and the Ghana Charismatic Bishops Conference.

A statement signed and released by the ministry’s Public Relations Unit later said the issues discussed included the nature and benefits of the transaction, ownership, transparency and domain of registration.

Others, the statement added, were initial valuation, future prospects as well as the need “to continue to engage with all stakeholders to get their buy-in and support.”

Finance Minister

Mr. Ofori-Atta has been explaining the need for Ghana to take advantage of the current time because of the high gold prices in spite of the prevailing tighter financing conditions due to the Covid-19 pandemic.

According to him, there are weaknesses in the current framework for managing the country’s mineral royalties which does not allow for the targeted use of and accounting for mineral royalties.

He said that it was expected to be listed on the London and Ghana Stock exchanges, where the government planned to sell up to 49 per cent shares via an initial public offer (IPO).

He had said the shares would be dually listed on the London and Ghana Stock exchanges, and explained that registering the entity in Jersey, the Channel Islands, was very well intentioned, given that a number of international companies, including Tullow and Vodafone that were listed on the London Stock Exchange were all registered in Jersey.

He was also said to have stated that a listing on the London Stock Exchange would ensure that Agyapa Royalty would be required to abide by the highest standards when it came to corporate governance and reporting requirements among others.

By Ernest Kofi Adu