Ken Ofori-Atta rejects Amidu’s corruption suspicion in Agyapa deal
Finance Minister, Ken Ofori-Atta, has rejected the Special Prosecutor’s claim that the $1bn mineral royalties agreement could lead to corruption.
Mr. Ofori-Atta maintained that the transaction was transparent and executed in consonance with the laws and procedures of the country.
He was reacting to the deficiencies and flaws pointed out by the Special Prosecutor Martin Amidu in an Analysis of Corruption and Anti-Corruption Assessment conducted on the request of President Nana Akufo-Addo.
The Minerals Income Investment Fund (MIIF), representing the government of Ghana, set up Agyapa Royalties Limited, a limited liability company, to receive Ghana’s gold royalties.
In a response to President Akufo-Addo dated October 30, 2020, after Special Prosecutor Martin Amidu had submitted his work, the Finance Minister insisted that: “There is no justifiable reason for concluding that the current members of the MIIF Board will jeopardize their apparent professional integrity and reputations to engage in corrupt practices motivated by partisan considerations”.
The Special Prosecutor pointed out that the engagement of IMARA Corporate Finance Limited (Pty) (Imara), a South African firm, as Transaction Advisor did not receive parliamentary approval.
Additionally, the Special Prosecutor raised concerns about the partnership of Databank Limited and IMARA and the payment of $15,000 monthly retainer for 12 months during the evaluation and recommendation phase of the deal and $4 million as a success fee.
Databank was co-founded by Mr Ofori-Atta but he resigned from the firm years before taking up politics and being appointed as Finance Minister but his ties with the firm have raised questions in various transactions.
The Special Prosecutor believes the Deputy Minister of Finance, Charles Adu Boahen, did not have the authority to carry out and sign an agreement on that scale on behalf of the country but the Minister.
But Mr Ofori-Atta explained that the contract had the approval of the Public Procurement Authority (PPA).
Citing a Supreme Court ruling in 2012, in the case of the Attorney General v. Balkan Energy [2012], he said the capacity in which the advisors were engaged did not violate parliamentary guidelines just as corporate firms have executed government of Ghana bonds.
He added that the authority to execute public contracts on behalf of the State Ghana is not vested only in the Minister of Finance.
Read the full response by the Minister of Finance below:
If the finance Minister’s response was what the people needed then the OSP shouldn’t have been referred to.
He better keep quiet and walk away not to attract further sanctions.