Agyapa spending: US$2m outstanding debt could be higher - Bright Simons explains

The botched Agyapa deal cost the government US$12 million with an outstanding debt of US$2m according to documents sighted by GhanaWeb.

The Chief Executive Officer of the Minerals Income Investment Fund (MIIF), Edward Nana Yaw Koranteng, recently disclosed the US$12m figure to Parliament's Public Accounts Committee.

IMANI Africa Vice President Bright Simons published on X (formerly Twitter) a breakdown of how 10 entities, local and international, were paid varying sums that came up to the amount.

Asked by a tweep if the outstanding debt of US$2m meant the entire expenditure came up to US$14m, he answered in the affirmative but clarified that the figure could rise by now since the sum was due before the suspension in 2021.

"The $2m is yet to be paid. Note however that the transaction is in limbo. If they proceed they will also have to pay underwriting and a host of other fees,which will be larger. Then there is interest. And any compliance fees not disclosed here," he pointed out.

Watch his tweet below:

Yes. The $2m is yet to be paid. Note however that the transaction is in limbo. If they proceed they will also have to pay underwriting and a host of other fees,which will be larger. Then there is interest. And any compliance fees not disclosed here.

— Bright Simons (@BBSimons) February 23, 2024

Meanwhile, the Mines and Energy Committee of Parliament has formally requested to be furnished with details of the expenditure.

The biggest payment out of the US$12m was to Imara Holdings, the transaction advisor on the deal who bagged over US$9.6 million.

Some legal and audit firms were also paid varying sums, plus over US$1.5m paid as staff salaries. The Ghana Stock Exchange was also paid an amount according to the list sighted by GhanaWeb.

The Agyapa deal was primarily to generate funds for crucial infrastructure projects through mineral royalties.

It was halted by President Nana Akufo-Addo in 2021 following concerns raised by civil society groups and the main opposition National Democratic Congress (NDC).

SARA

Watch the latest edition of BizHeadlines below:



Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.

Click here to follow the GhanaWeb Business WhatsApp channel