Dr. Kwesi Botchwey, the former Minister of Finance over the weekend joined the debate over the golden share, saying it is how it is used that can be bad.
He was speaking in an interview on Ghana Television’s Kweku-one-One programme.
He said Ghana is not the only country which held something like golden share though he did not name countries that did.
Explaining, he said the government must make sure it does not stand in the way of any good deal that involves co-operation between countries and investors:
“We must ensure that the golden share is used in a principled way, in a way that will not deter them, but signal that the government will not use it capriciously.”
The former Finance Minister said the issue must be subjected to dispassionate debate.
The debate which has been going on for some months now, appeared to have petered off following statements made by the Chief Executive of Ashanti Goldfields, Dr. Sam Jonah in South Africa during a two-week gold conference and meetings.
A report in The Financial Times stated that discussions with the Ghanaian government over restructuring its golden share showed signs that efforts to persuade Accra to relinquish its blocking rights are unlikely to bear fruit soon.
“In reality the golden share’s bark is worse than its bite. It can’t be used to stop deals. AGC would be sensitive to the emotional attachment to the golden share and helpful to the government to restructure it so that it didn’t cause embarrassment,” he said.
The development signals a shift in strategy for the African gold mining group. It had been hoping to persuade the government to surrender its golden share, long seen as a deterrent to foreign investors in the company.
“I believe the golden share will be restructured.
It’s an anachronism. But it can’t do what people perceive it to do,” said Sam Jonah, “I can’t believe that if there was a good deal on the table, the government would say ‘we have a golden share and will stop it’.”
The golden share gives the Ghanaian government, which owns 20 per cent of AGC, a veto over disposal of assets and leases and can be exercised in the event of liquidation.
Investors fear it could block a deal with a large mining company.
Analysts believe AGC could be a take-over target as the consolidation of the gold mining industry gains momentum.
Possible bidders include Gold Fields of South Africa and Anglogold, owned by Anglo American.
Although the present government is seen as more investor-friendly than its predecessor, it said recently that it has no immediate plans to abandon the golden share.
The company has iconic status as Ghana’s largest company.
Dr. Jonah had been trying to convince potential suitors that the golden share could be side-stepped at the Investing in African Mining Conference.
He insisted that the chances of the government using its veto to block deals was slim.
Opponents and supporters of the debate have been very vocal.
One of the more respected opponents of the golden share’ s removal is US-based noted historian and analyst, Dr. Kofi Ellison.
The other supporter is an equally celebrated analyst and strategist, Dr. Kwapong.
Dr. Jonah also played down any removal of the golden share as a condition of a proposed $219million refinancing struck with creditors.
“These financiers are going to become shareholders when 25 per cent of the bonds are equitised. It’s in every shareholder’s interest for the shadows affecting the company value to be lifted.
