Not Again!! Why is miramex company ltd getting special treatment?

By Solomon Davids

Information making the rounds is establishing allegations that government has extended the export, buying and selling license of Miramex Company Limited owned by one Maged Kodaih to market Ghana’s precious minerals to the detriment of the Precious Minerals Marketing Company (PMMC), a state owned company for another three years.

The extension of the license was granted from 23rd April, 2014 by Minerals Commission but shockingly per the activities of Miramex Company ltd now, PMMC is the mandatory body to grant them the permit to deal in buying from small scale miners.

Miramex Company Ltd is again not supposed to do third party exports of gold services but is doing it to the disadvantage of the state owned entity while officials look on unconcerned.

Checks at the PPMC reveal that Miramex is not on the list of companies permitted to do gold business with small scale miners.

Further checks show that the authorized business of Precious Minerals Marketing Company Limited (PMMC) is, to buy and sell precious minerals; to appoint licensed buyers for the purchase of precious minerals produced by small – scale miners; to export gold on behalf of third parties for a commission; to promote the development of precious minerals and the jewellery industry in Ghana and to do all such things as are indicated or conducive to the attainment of its objectives and functions.

It would be recalled that, during the NPP regime, government declared its intention to withdraw the services of Miramex Company Limited, a private mineral marketing company which was competing keenly with Precious Minerals Marketing Company (PMC) in the country.

The then Mines Minister, Hon. Kwadwo Adjei-Darko, dropped the hint when he paid a familiarization tour to PMMC in Accra.

According to the minister, revelations emanating from investigations conducted at that time did not encourage the ministry to guarantee Miramex to continue its operations in the minerals market.

‘Are the minerals commission officials telling us that they are not privy to this investigation finding by the ministry of Mines? Why is Miramex Company ltd having special treatment? These are the questions concerned Ghanaians and stakeholders are asking.

Adjei-Darko maintained that the company was licensed by the NDC government through former Finance Minister Mr. Kwame Peprah, with which there were certain discrepancies which drew the attention of the government, and resulted in the halting of the operations of the company.

Explaining further, the sector minister said the government is withdrawing the services of Miramex in accordance with the Kimberly Conference which demands certification of sale diamonds so as to avert the marketing of conflict diamonds.

'We do not want to encourage Sierra-Leone and Liberia situation in Ghana', Adjei-Darko stated.

To this end, the question industry players are asking is why is Miramex Company Ltd being shielded by some officials of the Minerals Commission to perpetrate illegality against the state without complying with the license granted them to deal with big mining companies but have ventured into small scale activities?

They are awaiting responses from those at the forefront of the industry.

Why the establishment of PMMC?

The Company was established in 1963 as Ghana Diamond Marketing Board charged with the responsibility for the purchase and marketing of the country's diamonds. In 1965, by Legislative Instrument (LI) 401, the Company was incorporated as a State Owned Enterprise (SOE). With the promulgation of the diamonds decree (NRCD 32) in 1972, LI 916 was enacted to change the company's name to Diamond Marketing Corporation.

In 1989, PNDC Law 219 was enacted to yet again change the Company's name to the Precious Minerals Marketing Corporation. Finally in year 2000, it was converted by Act 461 (Statutory Corporations Conversion to Companies Act) to a Limited Liability Company to operate under the Ghana Companies Code (Act 179 of 1963) as Precious Minerals Marketing Company Limited.