A startling revelation has emerged detailing how the government reportedly wasted US$12 million on the aborted Agyapa deal, a scheme aimed at raising funds for development projects through Ghana’s mineral royalties.
The Vice President of IMANI Africa, Bright Simons, a policy think tank, took to X (formerly Twitter) to disclose a breakdown of payments made in the controversial deal. According to Simons, 10 entities, both local and international, received various sums from the deal.
The major beneficiary was Imara, a company that served as the transaction advisor and allegedly pocketed over US$9.6 million. Legal and audit firms also received payments, along with over US$1.5 million designated for staff salaries. The Ghana Stock Exchange was also reportedly among the recipients.
Simons further highlighted an outstanding payment of US$2 million that the Minerals Income Investment Fund (MIIF), the state agency behind the deal, has yet to settle.
The Agyapa deal intended to create a special purpose vehicle (SPV) in the tax haven of Jersey to manage Ghana’s mineral royalties. However, it faced suspension in 2021 after public outcry, opposition from civil society groups, and the National Democratic Congress (NDC).
The Chief Executive Officer of MIIF, Edward Nana Yaw Koranteng, recently informed the Parliament’s Public Accounts Committee about the expenditure on the deal. Parliament has since written to Mr. Koranteng, seeking details and supporting evidence regarding the US$12 million expenditure.
Koranteng claimed that the funds were spent on the Agyapa SPV, consultancy fees, rental of office accommodation, and processes leading to the initial public offering for the entity’s listing on the London Stock Exchange.
Simons questioned the transparency and accountability of the deal and raised concerns about the role of the Auditor General in overseeing such matters. He emphasized the lack of visibility into the list of payees, including subcontractors such as law firms, PR firms, and finance houses in Ghana.
Simons expressed doubts about accountability, particularly given the secretive nature of the deal set up in the tax haven of Jersey, and criticized the Auditor General’s apparent oversight of such issues.
“If you are staring at the Agyapa ‘money spent so far’ accounts and wondering who these ‘staff’ (Directors etc) are that have been paid $1.5m of Ghana money, well, why do you think some of us kept complaining about it being set up in the secretive tax haven of Jersey? Note also that this isn’t the full list of payees. There were subcontractors, including some law firms, PR firms and finance houses in Ghana. You see how opaque everything is? Even at this point? Do supporters still think that accountability would be possible once operational? Bear in mind that this matter wasn’t flagged by Ghana’s Auditor General (AG). It came up because of a random question at the PAC hearing in Parliament. Based on what I see, I can say that the AG doesn’t flag 90% of PFM issues. A Jersey SPV? With such weak institutions?”