Agyapa Royalties deal is an 'opaque transaction' - Isaac Adongo

The National Democratic Congress (NDC) Member of Parliament (MP) for Bolgatanga Central, Isaac Adongoh, has described the Agyapa Royalties deal entered into by government as an “opaque transaction”, which will lead to loss of revenue to the country for 15 years.

He, therefore, advised the government to engage in transparent deals that would inure to the benefit of Ghanaians.

He was speaking in an interview monitored by Ghanaian Times on United Television (UTV) in Accra, last Saturday.

According to Mr Adongo, the company which would be registered in Jersey, United Kingdom (UK), was a ploy by government to undertake tax avoidance schemes and engage in fraudulent deals.

“Jersey is tax haven for which reason the government wants to undertake such fraudulent deals which would be hidden from Ghanaians. If government is transacting such deals then our hearts must be bleeding,” he added.

Mr Adongo pointed out that it would have been better for government to “create an account where funds from mineral royalties would be accumulated for development”.

He noted that if the government was interested in undertaking transactions that would catapult Ghana to a sophisticated state, it should transact the business in the country, adding that the NDC would not agree to the arrangement.

Addressing the issue of the banking sector financial problems, Mr Adongo indicated that if the government, through the Bank of Ghana (BoG), had followed “the reform agenda” started by the former NDC government, several financial institutions would not have gone down the radar.

He said that the NDC’s reform agenda was built around carefully crafted interrelated pillars to produce solid, well capitalised and globally compliant competitive banking sector.



The MP mentioned that the roadmap included conduct of an independent asset quality review by the Price Waterhouse Coopers (PWC) in 2015, reform of legal framework for banking sector regulation.

Mr Adongo said BoG under the announced comprehensive recapitalisation and clean-up programme based on two pillars, would have been rolled out at a minimum capital requirement of GH¢230 million and a guideline for cleaning up balance sheet of banks through risk-based model.

He said the banking sector reform strategy would have been seamless, less disruptive, increase confidence [in the banking sector] and produce strong banks that are compliant with international standards and best practice.

Mr Adongo argued there was no reason behind using GH¢?23 billion to collapse the banks when fraction could have been used to save the banks and its accompanying jobs.