A group of Civil Society Organizations (CSOs) has urged President Akufo-Addo to promptly cease all components of the failed Agyapa Mineral Royalties transaction agreement.
In a united statement, the CSO Coalition disclosed their awareness of ongoing Agyapa-associated processes, including negotiations for a Bilateral Investment Treaty (BIT) and a Double Taxation Agreement (DTA) with Jersey, where Agyapa Royalties Limited was intended to be domiciled.
“We are aware of other Agyapa-linked processes that are ongoing, including negotiating a Bilateral Investment Treaty (BIT) and a Double Taxation Agreement (DTA) with Jersey, where the Agyapa Royalties Limited was intending to be hosted”.
“The Coalition hereby reiterate our opposition to the deal and demand that the President should completely terminate the Agyapa,” the statement added.
“It is instructive to note that between 2020 and 2022, cumulative Mineral Royalty receipts by the state was in excess of USD 720 Million, half of which would have been forfeited for the upfront USD 500 million sought through the ill-reputed Agyapa deal. Again, this gives credence to the value for money concerns raised by the Coalition.”
Furthermore, the Coalition highlighted Ghana’s potential loss of approximately US$500 million in mineral royalties between 2020 and 2022 under the Agyapa arrangement.
Nevertheless, the Coalition expressed astonishment at the disclosure that a total of US$12 million had been expended on the defunct deal.
“The Coalition was particularly alarmed by this revelation because at the time of suspension of the deal in 2020 by H.E the President, there was no disclosure on expenses related to the deal.”
President Akufo-Addo had suspended the Agyapa Mineral Royalties transaction agreement in 2020.
During his delivery of the 2021 State of the Nation Address in Parliament, the President indicated the government’s intention to re-engage Parliament to chart a new course for the Agyapa Mineral Royalties transaction.
Meanwhile, the Minerals Income Investment Fund (MIIF) in February,2024 revealed that 12 million dollars spent on the deal.
During an interaction with Parliamentary Appointments Committee (PAC), CEO of MIIF, Edward Nana Yaw Koranteng, revealed that the government had utilized $12 million on the halted Agyapa royalties agreement.
Mr Koranteng informed the PAC on Tuesday, February 13, 2023, that the $12 million expenditure was allocated to processes associated with initiating the initial public offering on the London Stock Exchange before the Agyapa deal was halted.
Addressing queries regarding due diligence, Koranteng clarified that the Ministry of Finance had engaged the services of international consultancy firms and financial institutions with expertise in such matters.
He reiterated that the Ministry of Finance had acted upon the advice provided, deeming it to be prudent.
Furthermore, he elaborated that the establishment of a gold royalties company, aimed at leveraging royalties streaming for the benefit of Ghana, was the intended outcome based on the counsel received.
“My understanding, honourable chair, is that the Ministry of Finance procured the services of international consultancy and companies and financial institutions that have done this in the past and that the advice provided was what the Ministry of Finance stood on.
“We started with the Ministry of Finance, and from the documents that we have, it is clear that the correct advice was provided on the set-up of a gold royalties company where the streaming of the royalties would benefit Ghana,” he stated.
Read the statement from the CSO Coalition below:
We, the undersigned members of the Coalition of Civil Society Organisations (CSOs) Working on Extractives, Anti-Corruption and Good Governance have noted with great concern recent revelation at the Public Accounts Committee hearing on February 13, 2024, that a staggering US$ 12 million (which is in excess of GHS 150 million under the prevailing exchange rate) has been spent on administrative and advisory services in relation to Agyapa.The Coalition was particularly alarmed by this revelation because at the time of suspension of the deal in 2020 by H.E the President, there was no disclosure on expenses related to the deal. The recent Auditor General’s reports (2020, 2021 and 2022) on Public Boards, Corporations and other Statutory Institutions were silent on any expenditure related to the scandalous Agyapa deal. This lack of accountability affirms concerns raised by the Coalition in previous statements about the lack of transparency around the Agyapa transaction.It is instructive to note that between 2020 and 2022, cumulative Mineral Royalty receipts by the state was in excess of USD 720 Million, half of which would have been forfeited for the upfront USD 500 million sought through the ill-reputed Agyapa deal. Again, this gives credence to the value for money concerns raised by the Coalition.Given the insistence by the good people of Ghana that Agyapa is a bad business case and a drain on the public purse, the President on 9th March 2021 indicated in his address on the State of the Nation that “…government will come back and engage the house on the steps it intends to take on the future of the Agyapa transaction.”This stance was further reiterated by the then Minister of Finance (MoF) at his vetting on 26th March 2021 that the deal would be resubmitted to parliament for consideration. In spite of this commitment, there have not been any public engagements. However, the Coalition is aware of other Agyapa-linked processes that are ongoing, including negotiating a Bilateral Investment Treaty (BIT) and a Double Taxation Agreement (DTA) with Jersey, where the Agyapa Royalties Limited was intending to be hosted.The Coalition hereby reiterate our opposition to the deal and demand that the President should completely terminate the AgyapaSignatory Organisations:1. Africa Centre for Energy Policy (ACEP)2. Natural Resource Governance Institute (NRGI)3. iWatch Africa4. Ghana Anti-Corruption Coalition (GACC)5. SEND Ghana6. Third World Network Africa7. Revenue Mobilization Africa (RMA)8. Institute for Energy Security (IES)9. IMANI Centre for Policy and Education10. Northern Patriots in Research and Advocacy (NORPRA)11. TAMA Foundation Universal12. Economic Governance Platform (EGP)13. ACT Africa14. Oxfam in Ghana