Agyapa Royalties deal excellent for advancing Ghana’s economic fortunes – Razak Opoku

A member of the New Patriotic Party, Razak Kojo Opoku has touted the Agyapa Royalties transaction as one that has the potential to advance Ghana’s economic development and fortunes.

According to him, President Akufo-Addo’s latest indication to re-table the deal before Parliament is based on the premise of good intentions that would create jobs and generate income through the gold royalty fund.

“The Agyapa Royalties deal is an excellent deal with the greatest potential of changing the fortunes of the socio-economic architecture of Ghana, and it is very essential that all of us support the deal.”

“It is also to secure a better deal for the collective benefits of all Ghanaians, build public confidence in the deal, ensure further scrutiny and probity of the deal and Enact proper nationalistic laws to regulate the deal”.

Razak Opoku made this known in an interview with the Ghana News Agency monitored by GhanaWeb.

He also pointed out that it was prudent for the Databank, who was initially named as the transaction advisor of the deal, to pull out of it over conflict of interest concerns raised by a section of the public, civil society groups and some members of Parliament.

“It is also very important to state that Databank has withdrawn their services as a partner and transaction advisor in the Agyapa Royalties deal largely due to the several unjustifiable attacks on the Bank, the Finance Minister-designate, Ken Ofori-Atta and family members of President Akufo-Addo by members of NDC and other CSOs,” he added.

The controversial gold royalty deal was put on suspension after civil society organisations, Members of Parliament and a section of the public rejected it saying it was not going to serve the best interest of the country.

Martin Amidu, the former Special Prosecutor in a corruption risk assessment had earlier concluded that there were breaches of the Public Procurement Act and the Public Financial Management Act with regards to how the advisors of the gold royalty fund agreement were procured.

Martin Amidu disclosed that the process involving the transaction raised reasonable suspicion of bid-rigging and corruption.

The risk assessment report also indicated that the procurement of service providers for the transaction showed possible cronyism and nepotism which could result in illicit financial activities and money laundering.

Mr Amidu subsequently resigned from his role as Special Prosecutor in November last year.

The Agyapa Royalties Deal

Prior to approving the Agyapa Royalties transaction, Parliament in 2018 passed the Minerals Income Investment Fund (MIIF) Act 2018 which establishes the Fund to manage the equity interests of Ghana in mining companies and receive royalties on behalf of government.

The sole purpose of the fund is to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country and government through the MIIF.

As part of the transaction, the gold royalty fund aims to raise between US$500 million and US$750 million for the Government on the Ghana and London Stock Exchange intended for development projects.