Abrogate Agyapa Royalties transaction completely – Dr Manteaw tells government

Executive Director of the Integrated Social Development Centre (ISODEC), Dr. Steve Manteaw has reiterated a call on government to abrogate the controversial gold royalty transaction, Agyapa Deal.

The development comes after President Nana Addo Dankwa Akufo-Addo in his State of the Nation address earlier this month disclosed that the deal was going to be re-tabled before Parliament.

Reacting to the President’s statement during a sensitization workshop organized by the Ghana Anti-Corruption Coalition on the Agyapa agreement in Tamale, Dr Manteaw held that the deal still lacked transparency and ought to be completely halted.

“Agyapa has no transparency provisions such as we have with the Petroleum Management Act where we have a citizenship-led body in the name of public interest and accountability committee ensuring that citizens are able to have information on the management and the use of their revenues,” the ISODEC Executive Director he submitted.

“Again, Agyapa does not have mandatory requirements in terms of how to use the benefits of our mineral royalties such as we have in our Petroleum Management Act. The benefits of mining largely accrue to the national government. But it is these poor communities that have to live with the negative effects of mining for decades to come. We have to be heard if they want our mineral royalties to be gambled with, in the way this government is trying to do, ” he added.

The controversial gold royalty deal was suspended after civil society organisations, Members of Parliament and a section of the public rejected it saying it was not going to serve the best interest of the country.

Martin Amidu, the former Special Prosecutor in a corruption risk assessment report had concluded that there were breaches of the Public Procurement Act and the Public Financial Management Act with regards to how the advisors of the gold royalty fund agreement were procured.

Amidu disclosed that the process involving the transaction raised reasonable suspicion of bid-rigging and corruption. The report also indicated that the procurement of service providers for the transaction showed possible cronyism and nepotism which could result in illicit financial activities and money laundering.

Mr Amidu subsequently resigned from his role as Special Prosecutor in November last year.

The Agyapa Royalties Deal

Prior to approving the Agyapa Royalties transaction, Parliament in 2018 passed the Minerals Income Investment Fund (MIIF) Act 2018 which establishes the Fund to manage the equity interests of Ghana in mining companies and receive royalties on behalf of government.

The sole purpose of the fund is to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country and government.

As part of the transaction, the gold royalty fund aims to raise between US$500 million and US$750 million for the Government on the Ghana and London Stock Exchange intended for development projects.