Parliament advised Asaase Royalties to change its name – Assibey-Yeboah

The Chairman of the Finance Committee of Parliament Mark Asibbey-Yeboah says there is nothing sinister about the change of name of Agyapa Royalties limited – the company which will manage royalties from Ghana’s minerals – in the coming years.

The company was formerly called Asaase royalties sparking speculations over the striking similarities with the name Asaase Radio, a station believed to be owned by Gabby Otchere Darko, a relative of President Akufo-Addo.

Speaking to Francis Abban on the Morning Starr Tuesday, the New Juaben South MP said the parliamentary committee asked owners of the company to change the name because there were too many other companies with similar names.

“So when it came to parliament, we decided to change the name. The decision to change the name from Asaase to Agyapa Royalties Limited was because there were so many mining companies with the same name at the Registrar-General’s office,” he said.

He also dismissed the Minority’s basis for boycotting the passage of the deal.

“The Agyapa company is not 100% owned by the shareholders. Government of Ghana still holds 51%. We have seen so many things that didn’t have the blessing of the minority. It’s an election year and you don’t expect them to applaud gov’t for putting together such a beautiful deal”.

Background:

Parliament passed the Minerals Income Investment Fund Act 2018.

The act establishes the Minerals Income Investment Fund to manage the equity interests of Ghana in mining companies, and receive royalties on behalf of government.

The fund is supposed to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country. The law allows the fund to establish Special Purpose Vehicles (SPVs) to use for the appropriate investments. Last month, government introduced an amendment to the act to ensure that the SPVs have unfettered independence.

The minerals royalties investment agreement between the government of Ghana and Minerals Income Investment Fund, Agyapa Royalties Limited and ARG Royalties Ghana Limited is concerning Gold Royalties Monetisation Transaction under the Minerals Income Investment Fund Act, 2018 (Act 978).

The arrangement will immediately make available US$500 million once executed and the remaining half later.