The Minister for Finance designate, Ken Ofori-Atta has voiced his concerns about the report authored by former Special Prosecutor Martin Amidu in the Agyapa transaction.

Following the controversies over the Agyapa deal, the Special Prosecutor at the time, Martin Amidu raised red flags over the risks of money laundering in the deal and possible bid-rigging in the contracting of advisors.

Mr Amidu shared his report publicly in November last year which gave further impetus to the advocacy for a review of the Agyapa Royalties deal.

But when the Finance Minister-designate claimed that the decision by the anti-graft campaigner to put out the report without giving him the opportunity to respond was a disservice to him.

“There is a bit of cynicism around the Agyapa transaction. I think that for Martin Amidu’s report on it to be put out to the public without a chance by people like me to discuss it is a disservice,” Mr Ofori-Atta told Parliament’s appointments committee on Thursday during his vetting.

In response to a question posed by the Builsa North lawmaker, James Agalga whether the participation of Data Bank as a banking advisor in the transaction amounts to a conflict of interest, Mr Ofori-Atta said as a public official, he was not part of any decision taken by the bank although he is a co-owner.

He stated that a broader discussion must however be held on whether independent persons can be appointed and still have businesses.

Meanwhile, he said the Agyapa deal will be resubmitted to parliament for it to be scrutinized before it is passed.

“We will resubmit it to parliament. The question, in this new normal, is what we do to leverage our natural resources. I hope we all come to terms with how we will capitalize and grow our transformation.”

Background

In 2018, Parliament 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 the government. The purpose of the fund is to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country.

The government then, through the Minerals Income Investments Fund(MIIF), set up Agyapa Royalties Limited to monetize Ghana’s gold royalties. This was after Parliament on August 14, 2020, approved the Agyapa Mineral Royalty Limited agreement with the government of Ghana despite the walkout by the minority.

In exchange, the company plans to raise between $500 million and up to about $1 billion for the government on the Ghana and London Stock Exchanges to invest in developmental projects.

The deal, however, has become a topical issue following concerns first by the opposition National Democratic Congress leading up to the December 2020 general elections.
On August 14, 2020, a few days after approving an amendment to the MIIF Act, the Minority walked out during the approval process of the very transaction agreements, the facilitation of which the amendment to the Fund’s statute was amended.

Civil society groups quickly added their voices to the opposition, describing the Special Purpose Vehicle (SPV), being created then, Agyapa Royalties of Jersey, as not being transparent, potentially corrupt, under valued and that it must be suspended for greater stakeholder involvement, according to some of the dissenting voice.

The government has however insisted that the deal is in the best interest of the country. The President, last year, directed the Finance Minister and Attorney General to review the transaction agreements and make the necessary adjustments to address some of the concerns raised by stakeholders, where appropriate.

Source:Ghana/Kasapafmonline.com/102.5 fm