Govt to collateralize mineral royalties for US$1 billion; Minority fumes

The Minority in Parliament says it will resist an attempt by government to use the country’s mineral royalties as collateral for up to US$1 billion.

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.

Speaking to the media, Minority Spokesperson on Finance, Cassiel Ato Forson argued the move is inimical to the progress of the nation. According to him, government has already spent US$2 million on consultancy and legal fees for the deal.

The Africa Legal and Associates owned by Gabby Otchere Darko which serves as legal advisor to government for the transaction has already been paid US1 million the minority argues

Former Deputy Attorney General and Chairman for the subsidiary legislation Committee Dr. Dominic Ayine argued the arrangement has some legal challenges.

According to him the Minerals Income Amendment Act from which the agreement is drawing its authority has not been assented to by the President.

Former Deputy Power Minister, John Jinapor questioned why such a crucial agreement must be smuggled through on the last day of sitting.

But the majority says the move is good for the nation. Adentan MP Yaw Buaben Asamoa and Sekondi MP Andrew Egyapa-Mercer argued the arrangement is an innovative way of raising funds for the development of the nation.