Gov’t agrees to broaden consultations on $1bn Agyapa deal
The government has indicated it would be consulting broadly over the controversial Agyapa deal, which leverages Ghana’s mineral resources for $1bn in development finance.
The decision follows government engagement with civil society organisations, urging government to suspend it, describing the deal as opaque and amounting to ‘elite capture’
In a 15-point statement issued by the Finance Ministry, government said it would be meeting faith-based organisations, traditional leaders, academia and organised labour in the coming days.
The move to consult broadly on the Agyapa Royalties deal comes less than four weeks after the bill creating the deal was passed in Parliament – without Minority support.
About the deal
Government is looking for cash to finance capital expenditure and wants to leverage the country’s mineral resources to raise $1bn.
In the deal, 75.6% of royalties of at least 16 gold mining companies will go into Agyapa Royalties Ltd.
The company will list on the London Stock Exchange and the Ghana Stock Exchange and float 49% shares valued at $1bn.
It hopes to get investors to buy shares while Agyapa Ltd collects gold royalties from future mineral resources to pay as dividend to shareholders.
Agyapa Royalties Ltd is also incorporated in a tax haven, British channel island, Jersey, where companies don’t pay corporate tax. It means the company will enjoy considerable tax reliefs.
The Finance Ministry has touted the deal as an opportunity for Ghanaians to own a share of the country’s mineral resources and also an inventive way to raise money for development.
CSOs meet government
At a meeting Tuesday, leading CSOs interacted with the Finance Minister, Ken Ofori-Atta and requested for further documents to allay their concerns.
The Finance Minister obliged.
The statement stressed the deal nonetheless was not shrouded in secrecy and that was done in “the full glare of parliament in the spirit and letter of transparency.”
Referring to the discussion with CSOs, the Finance Ministry statement quoted the minister’s words to the pro-good governance group.
“I want to assure you that the integrity of the Minerals Income and Investment Fund and Agyapa Royalties and what the government intends to have them do are all above board.”
The Finance Ministry also confirmed some of the concerns raised by the CSOs.
They included “the registration of Agyapa in a ‘tax haven’. Other concerns centred on the payment of royalties and how the government arrived at the CSOs understanding of the fair value of US$1 billion as the transaction value.”
The Finance Ministry revealed that later in the meeting, the spokesperson for the coalition of CSOs, Dr. Steve Manteaw, expressed satisfaction that government was “clearly working within the MIIF law.”
The statement also praised the CSOs and called their work one that “cannot be exaggerated”
“You are able to draw citizens and government to our blind spots through your research, policy analysis and advocacy.”
“No democracy can survive in the absence of an active civil society,” the statement reads.
This particular commendation would be music to the ears of the CSOs after a ranking member of the government, Elizabeth Ohene criticized them as “all-knowing.”
The Finance Ministry also rejected claims that the deal amounted to cronyism. Explaining it, the statement said the minister referred to section 4 of the MIIF Act which states that Agyapa Royalties Ltd would not provide “credit” to any government entity or private individual.
This law, he said is “clearly against any attempt to abuse the funds. It can, therefore, not be a vehicle for cronyism.”
Now you’re running away.
If you think you’ll survive with this opaque engagement you lie bad .
If not that we’re close to election, like you people will ignore everyone and go ahead
David from Pokuase
Wait and let them finish the pokuase interchange before you provoke them
How can they survive this ?
This time around Ghanaians are more observing the loud silence.
The truth is there for all who matter to make their voices clear and lou
This deal is very good for Ghana regardless. The visionary Nana Addo should not listen to the rantings of the visionless Mahama and his known loot and share NDCs who lacks the intellectual capacities and men to think like the industrious NPP with their brains and birth such an innovative way of harnessing our mineral royalties for the general developments of Ghana and prosperity of our mining communities specifically!!! We will plead with the so called “CSOs” to read wider on the discourse before joining the empty NDCs and their unnecessary rantings… President Nana Addo is undoubtedly the best President in Africa!!! He has the country at heart! God bless President Nana and his able vice President Bawumia for 4 more years, focus and strength to do more for mother Ghana!!
Is it that u can’t read or what?
Where in the above statement u read mentioned NDC or Mahama?
Can people like u sometimes leave us who are not partisan to make some sense out of what people who think about Ghana’s Good write something for us to be informed?
If you think you are talking sence while hiding? Mention you name and let ‘s no who you are.
Well spoken but i think there are some areas that i disagree with you . Yes we were told by this govt to be citizens and not spectators. Ghanaians are discerning and cautious this time and thats why we cant be deceived anymore . Yes there are some facts that should be set straight. Developments are indeed needed in mining areas but who is to be blamed when there are chiefs that are being also paid royalties from whatever mining companies that find a place to mine in such locations . The central government at the regional level distribute the developments equitably. This deal of leveraging the nations royalties has indeed been called for even during the times when Kwabena Duffour was finance minister .. This govt realized the good in the deal but tries to implement it differently and thats where the transparency issue was raised . We hear comments from parliamentarians that say over 140 page document was presented to them to go through within 30 minutes which was later extended to 4 hours maximum for deliberations and debates to be done to favour the passing of the agyapa deal . yes it was approved by the parliament by close of the day in the absence of the minority because they walked out . I even bet if the president was even briefed about it at the first place . its when inconsistencies were detected that the state is kind of suspending the deal for broader consultation to be done .
Is it that u can’t read or what?
Where in the above statement u read mentioned NDC or Mahama?
Can people like u sometimes leave us who are not partisan to make some sense out of what people who think about Ghana’s Good write something for us to be informed?