The Special Prosecutor, Martin Amidu has announced the conclusion of a corruption risk assessment conducted into the controversial Agyapa Royalties deal by government.

A press release issued by the Office of the Special Prosecutor said that same has been conveyed to the President and the Finance Minister attached with conclusions and observations.

This, according to Mr. Amidu was done some two weeks ago saying the two week period is enough to inform the public about the conclusion of his constitutional mandate.

“The analysis of the risk of corruption and anti-corruption assessment was completed and signed by the Special Prosecutor on 15th October 2020. The Special Prosecutor in a letter with reference number OSP/SCR/20/12/20 dated 16th October 2020 conveyed the conclusions and observations of the anti-corruption assessment to H. E. the President and the Hon. Minister of Finance as a matter of courtesy before informing the public.”

“Two weeks is more than too long for this Office to continue withholding the announcement
of the completion of its sixty-four (64) page report to the public. It is important that this Office has the freedom to discharge its anti-corruption mandate and keep the public informed. I have, therefore, decided to bring the facts of the conclusion of the anti-corruption assessment of the Agyapa Royalties Transactions by this Office to the attention of the public and to avoid the continued speculations on this matter,” the Special Prosecutor added in the press release.

Kasapafmonline.com is yet to sight the full 64-page report of the corruption risk assessment on the Agyapa Royalties Transaction.

Special Prosecutor Martin Amidu asked the Finance Ministry to hold on with its scheduled initial Public Offer (IPO) on the Agyapa royalties deal until he is done with his corruption risk assessment on the transaction.

“This Office would have wished to complete its corruption risk assessment on the Agyapa Royalties Transaction soonest but for the non-submission of the information and documents pending to be submitted by your Ministry. The information and documents you supplied concerned mainly the processes for and the appointment of the Transaction Advisors which goes to the root of any corruption risk assessment,” Mr Amidu said in a letter to the Finance Ministry.

The letter added: “Information and documents relating to the identification and recommendation by the transaction advisors to your Ministry for appointment a list of other services providers and or underwriters that may be required to complete the transaction as provided in clause 2.2.1 of the mandate agreement amongst others, that are critical to any through corruption risk assessment are also outstanding. The legal opinions particularly of the principal legal advisor to the government under the Constitution are relevant to ensure compliance with her recommendations as part of any corruption risk assessment.”

“In the circumstances, this Office wishes to urge you to abide by the results of the corruption risk assessment it is undertaking on the transaction before moving to the launching of the IPO transaction. This Office makes this suggestion on the grounds of prudence on your part and to also not give the impression that the mandate of this Office on prevention of corruption is of no consequence to the transaction,” it noted.

About the Agyapa deal

Parliament August 14th approved the controversial Agyapa Mineral Royalty Limited agreement with the government of Ghana despite a walkout by the Minority.

Two years ago, the House passed the Minerals Income Investment Fund Act 2018 which establishes the Fund to manage the equity interests of Ghana in mining companies, and receive royalties on behalf of government.

The fund is supposed to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country.

The law allows the fund to establish Special Purpose Vehicles (SPVs) to use for the appropriate investments. Last month, government introduced an amendment to the act to ensure that the SPVs have unfettered independence.

The approval will enable the country to use a special purpose vehicle, Agyapa Royalties Limited to secure about $1 billion to finance large infrastructural projects.

In line with that, Agyapa, which will operate as an independent private sector entity, will be able to raise funds from the capital market, both locally and internationally, as an alternative to the conventional debt capital market transactions.

The funds, which are expected to be raised from the Ghana Stock Exchange (GSE) and the London Stock Exchange (LSE), will be a long-term capital, without a corresponding increase in Ghana’s total debt stock and hence without a public debt repayment obligation.