The controversial Agyapa Royalties deal, proposed by the Nana Addo Dankwa Akufo-Addo government, has once again sparked public outcry following reports of the government spending over $12 million on the deal despite its suspension.
Bright Simons, Vice President of IMANI Africa, has articulated reasons why the Agyapa deal, which would have impacted approximately 97% of Ghana’s royalties from mineral resources, must be urgently cancelled.
Speaking in an interview on JoyNews, Simons emphasized the manner in which the deal was pushed through parliament by the government and its majority, without proper scrutiny or approval.
He noted that the government began implementing the deal without parliamentary authorization, as required by law, and highlighted former Attorney General Gloria Akuffo’s criticism of the deal for its lack of parliamentary approval.
Simons further elucidated on the concerns surrounding the deal, revealing that it entails selling Ghana’s gold rights for $1 billion without any expiry date or restriction on future gold deposits.
This, he explained, would grant private investors control over royalties from potential future gold mines discovered in the country.
Moreover, Simons raised alarm over the mechanism through which the deal was structured, asserting that private investors would benefit disproportionately while Ghana would bear the brunt of the consequences.
He emphasized that the share price appreciation would primarily benefit specific investors rather than Ghana, as the underwriters would control the pricing before the shares debut on the stock market.
Furthermore, Simons warned that the selection of independent directors, controlled by deal insiders, would dictate dividend and investment policies to the detriment of Ghana’s interests.
The revelations by Simons have reignited public concern and scrutiny over the Agyapa Royalties deal, with calls for transparency, accountability, and ultimately, the cancellation of the agreement.
As stakeholders continue to dissect the intricacies of the deal, pressure mounts on the government to address the underlying issues and uphold the best interests of the nation.