Minority requests independent probe into valuation rights of Agyapa Royalties transaction

The National Democratic Congress (NDC) is requesting for an independent probe into the valuation rights of the newly approved Agyapa Royalties transaction.

According to the Minority Leader in Parliament, the NDC will notify the London Stock Exchange and the Financial Conduct Authority on which the Agyapa Royalties Limited will be listed to provide clarity of the value of assets of the company.

Speaking at a press briefing on Tuesday, September 1, 2020, Haruna Iddrisu described the assets of the company as ‘grossly undervalued’ in the transaction agreement.

“The worth of our gold revenue and their projects need a further thorough probe by independent economic transaction advisors for us to appreciate that they [the Akufo-Addo administration] are not ripping this country off.”

“We, therefore, wish to completely disassociate ourselves with the proposed relationship agreement and subsequent flotation of shares on the London Stock Exchange and further notice will that a future NDC government will no choice but to review the Relationship Agreement and other accompanying approvals.

We will today put the London Stock Exchange and the Financial Conduct Authority on notice that this agreement does not meet the minimum requirement of diligence and transparency and minimum requirements of our constitution” the minority leader stated.

Mr Haruna Iddrisu also adds that clarity should be provided on the procurement processes used to select the Africa Legal Associates (ALA) as legal advisors for the transaction agreement.

The ALA firm is owned by Gabby Otchere Darko the cousin of both President Akufo-Addo and Finance Minister Ken Ofori-Atta.

“We also need to know the cost of the transaction and how much has been paid to the lawyers and brokers including Gabby Otchere Darko’s firm. We need to know whether the amount of money paid to Gabby firm was at arm’s length,” he added.

Meanwhile, the Finance Minister Ken Ofori-Atta has asserted there are no hidden beneficiaries in the just approved Agyapa Royalties transaction by Parliament as suggested by the Minority and some civil society groups.

According to him, the Agyapa Royalties transaction was 100 percent owned by Minerals Income Investment Fund (MIIF), an entity that is also solely owned by the government of Ghana before its approval in Parliament.

The Government of Ghana through the Minerals Income Investment Fund (MIIF) set up the Agyapa Royalties Limited in a bid to monetize Ghana’s gold royalties.

In exchange for that, the company intends to raise between US$500 million and US$750 million for the Government on the Ghana and London Stock exchanges to invest in developmental projects.