NPP UK slams NDC over Agyapa deal

The Communication Directorate of the UK branch of the New Patriotic Party (NPP) has described the position taken by the National Democratic Congress (NDC) on the Agyapa Royalties deal.

A statement issued by the party indicated that the NDC has failed to see the future benefits of the deal which they opine will benefit the country.

“Once again, the NDC cannot see the future benefits of such a fund once listed on a major stock exchange, such as the London Stock Exchange, due to their own inability and failure to set up a similar investment vehicle in 2011.”

They want Ghanaians to ignore the NDC because in their view, they have nothing to add to the discussion.

The presidential candidate of the National Democratic Congress (NDC) John Mahama has promised to investigate the deal.

He also accused the President if failing to fight corruption.

“Obviously this government has lost the fight against corruption. Our people are tired of corruption, it demotivates them and they want that leader who is in office, who will not only investigate former appointees but also investigate people who engage in corruption in his era,” he said.

He was reacting to tie Minority’s position on the Agyapa deal.

The agreement between the government and the Special Purpose Vehicle (SPV) company was approved in line with the Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978).

If approved, this will enable the country to use a special purpose vehicle (SPV), Agyapa Royalties Limited, to secure about $1 billion to finance large infrastructural projects.

The company will then be able to raise funds from the capital market, both locally and internationally, as an alternative to the conventional debt capital market transactions.

The funds, which are expected to be raised from the Ghana Stock Exchange (GSE) and the London Stock Exchange (LSE), will be a long-term capital, without a corresponding increase in Ghana’s total debt stock.

But the Minority says the seal is bad and unreasonable.

However, the UK branch of the NPP says the position by the NDC is not something that should be considered.

Read their full statement below

*Press Release*

*Communications* *Directorate*

*NPP UK*

*01/09/2020*

*The NDC’s position* *on the* *creation* *of Agyapa* *Royalties* *is really* *mind* *boggling*.

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It’s astonishingly worrying that such a great investment vehicle supposed to work for Ghana, to bring in much needed financial support for Ghana is hated so much by the opposition NDC.

To the extend that they have cautioned investors not to take part in such an investment.

The NDC is behaving like a baby throwing tantrums for not getting what they want. They must grow up!

Once again, the NDC cannot see the future benefits of such a fund once listed on a major stock exchange, such as the London Stock Exchange, due to their own inability and failure to set up a similar investment vehicle in 2011.

Listing on the London Stock Exchange will open up Agyapa Royalties Company to global investors with a huge potential.

Five of such companies listed on the NYSE has a combined market capitalisation of $64billion.

We have all lived under the ‘paradox of plenty philosophy’, one where we are surrounded by mineral deposits worth billions but give it up for pesewas in the form of royalties and corporate social responsibility contributions.

The idea behind creating an investment vehicle which will allow the generation of some level of income for capital projects is massive, and could potentially transform our overall borrowing cost and could draw new contours of our fiscal space.

So far, we know that:

• Agyapa Royalities is 100% owned by the MIIF -Minerals Income and Investment Fund

• The Minerals Income and Investment Fund is 100% owned by Ghana

• The MIIF was created by the Minerals Income and Investment Fund Act 2018 (Act 978)

• It is 100% legitimate

• Royalties into the fund are from 16 mining companies

• The royalties into the fund are the government’s concession of royalties from the mining companies

• It is equity financing and not debt financing

Let us all ignore those with no vision or those who set lower standards.

Indeed the NDC does not have the best interest of Ghana and Ghanaians at heart.

4 More for Nana to do more for you.

Long live Ghana, Long live the NPP.

….Signed….

Nana Ansah Obofour- Director of Communications (07411461007)

Kwaku Bimpeh- Deputy Director of Communications (07949204396)

Barbara Osei -Wusu- Deputy Director of Communications (07533347762)