Agyapa: Government misled public in gold royalty agreement – Dr Steve Manteaw

Dr. Steve Manteaw, an Extractive sector policy researcher and analyst says he believes that the Agyapa Gold Royalties deal failed as a result of government misleading the public on the terms of the transaction agreement.

According to him, Ghanaians bought into a promise of a comprehensive mineral revenue management law only to presented with another without regard to the social contract.

“Ghanaians bought into the promise of a comprehensive mineral revenue management law only to be presented with a Mineral Income Investment Fund Act, without regard to the social contract.”

Dr. Steve Manteaw made the comments speaking at a forum on the theme “Extractive Sector Governance: Examining Political economy factors for promoting transparency, participation and accountability” organized by the Star Ghana Foundation.

Meanwhile, President Akufo-Addo delivering his State of the Nation Address in March this year told Parliament his government intends to further engage lawmakers on the future of the transaction.

“The government will come back to engage the House on the steps it intends to take on the future of the Agyapa transaction,” President Akufo-Addo declared.

Prior to that, former Special Prosecutor Martin Amidu in a corruption risk assessment had earlier 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.

Mr Amidu disclosed that the process involving the transaction raised reasonable suspicion of bid-rigging and corruption.

The risk assessment 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.

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 through the MIIF.

In exchange for that, the Agyapa Royalties Limited aims to raise between US$500 million and US$750 million for the Government on the Ghana on the London Stock Exchange intended for development projects.