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‘Agyapa deal is inherently illegal’ – CSOs threaten court action

Gold Barsa12121 Gold bars [File photo]

Wed, 18 May 2022 Source: www.ghanaweb.com

Agyapa deal will lead to equity resources, Ofori-Atta

Ghana’s mineral resources are not for the President, CSOs

Agyapa deal to be re-submitted to parliament


Some CSO’s have in a joint statement noted that the Agyapa Royalties Deal is inherently illegal.

The Civil Society Organizations (CSOs) totaling 24 including the Africa Centre for Energy Policy (ACEP), the Ghana Centre for Democratic Development (CDD) and the Centre for Extractives and Development Africa (CEDA), stated that the deal must be sent back to parliament else they would embark on a court action.

“Agyapa is inherently illegal. The President holds minerals in trust. They are not the President's property or his government’s. So, it is required that the agreement be returned to Parliament for approval. Refusing to do so means we will go to court.”

Finance Minister Ken Ofori-Atta in a press conference on May 12, noted that the Agyapa deal is being re-packaged to be presented to parliament.

“My firm philosophical belief really is that the capital markets are meant for something that will lead us to equity resources and we are not leveraging on it. Therefore, it is not the question of whether monetization of mineral royalties or listing of the company is bad or good.

“It is good because that is how you raise the resources. The question is the process of doing that. If you have a problem with the process just articulate it, let’s cure it but let us not drop something that will be good for us that will reduce our debt exposure. So those are two very different questions. How best to do it as opposed to, don’t do it. My mind is still there, I know the president has mentioned something about that going through the AG, Parliament to do that.

“But it is not something that is an asset to the country that one need to drop , you need to examine all your equity and debt positions and the best choice for the country. We will never have done free SHS if we listened to other people that is 400,000 lives that have a chance to do something , we would have stopped shot at e-levy because of the noise, suddenly we have a tax handle that will be pheromonally important for the country. so we need to look at that.”

The CSOs in rebuttal have noted that, “the coalition is not against alternative actions to optimise the mineral sector. However, we do not support the current attempt to sell the risk-free right of the country to royalties and the attendant questions around the transaction."

“The Africa Mining Vision is an important diagnostic instrument to identify ways to maximise mineral resources, and Ghana must show commitment to the regional document rather than short term gains to a set of politically connected people.”

The conversation on Agyapa came up recently after the Minerals Income Investment Fund (MIIF) was reported to have said that it is redesigning its strategy for listing its wholly-owned subsidiary Agyapa Royalties on the London Stock Exchange and the Ghana Stock Exchange after being named the best financial institution in the mining sector by the French-based publication Forbes Monaco.

Forbes recognised MIIF’s strategic acquisition of over 14 million shares and a roughly 4.65% stake in Asante Gold Corporation, a Canadian- and Frankfurt-listed gold production company which operates in Ghana.

It is recalled that in his first state-of-the-nation address to that Parliament in his second term in office on Tuesday, March 9, President Nana Addo Dankwa Akufo-Addo said “in the course of this session of Parliament, Government will come back to engage the House on the steps it intends to take on the future of the Agyapa transaction”.

The Agyapa deal after it was approved by the Seventh Parliament on Friday, August 14, 2020, was withdrawn after the then Special Prosecutor, Martin Amidu conducted a corruption-risk assessment.

H accused President Nana Akufo-Addo of interfering in his assessment of the deal under the Minerals Income Investment Fund Act, 2018 (Act 978).

Mr Amidu said in his resignation letter to the president said, “The reaction I received for daring to produce the Agyapa Royalties Limited Transactions anti-corruption report convinces me beyond any reasonable doubt that I was not intended to exercise any independence as the Special Prosecutor in the prevention, investigation, prosecution, and recovery of assets of corruption.”

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Source: www.ghanaweb.com
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