Review stability pact with the multi-nationals

Kumasi, July 20, GNA – The government has been urged to review the stability agreement with multi-national companies operating in the extractive sector.

This was necessary to help the country to derive maximum benefits from its natural resources.

This was contained in a statement issued by the Centre for Social Impact Studies, a non-governmental research and advocacy organization, and signed by its Director, Mr Clement Asiedu Mensah.

The organization noted that political instability, which provided the excuse for investors to force governments in Africa into signing such unfavourable pacts, no longer existed.

The statement said: “In the midst of positive indicators like political stability and growth in the economy, arguments for continued retention of the stability clauses in the country’s investment agreements with the multi-nationals are untenable.”

It cited the steady rise in commodity prices on the international market and said the presence of such clauses were only robbing the nation of the much needed revenue to finance its development agenda.

It said it was totally unacceptable that the mining companies still paid three percent royalties and were also exempted from VAT payment.