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Parliament approved Agyapa Mineral Royalty Limited’s controversial agreement with the government despite a minority strike.
Two years ago, Parliament passed the Minerals Income Investment Fund Act of 2018.
The law establishes the Mineral Income Investment Fund to manage Ghana’s equity interests in mining companies and receive royalties on behalf of the government.
The fund is supposed to manage and invest these royalties and share income to obtain higher returns for the benefit of the country.
The law allows the fund to establish special purpose vehicles (SPVs) to be used for appropriate investments. Last month, the government introduced an amendment to the law to ensure that SPVs have unlimited independence.
Below is a timeline that defined the controversial deal so far.
– 28th September 2018 – Parliament, at the end of a week-long emergency session, approves the 2018 Mineral Income Investment Fund (MIIF) Bill to allow the government to establish MIIF to receive royalties from mineral resources and reverse them. The bill allows the creation of a special purpose vehicle (SPV) in any jurisdiction to be used to make such investments.
– 3rd December 2018: The president signs the MIIF bill.
– 7th October 2019 – The presidents inaugurate the MIIF board of directors chaired by Tarkwa-Nsuaem MP George Mireku – Duker.
– 5th November 2019: The government through MIIF incorporates Asaase Royalties Limited with the Jersey Financial Services Commission in Bailiwick of Jersey, an independent Channel Island tax haven near the UK.
– fifteenth November 2020 – Finance Minister Ken Ofori Atta announces plans to list Asaase Royalties Limited on the London Stock Exchange in January 2020 to raise $ 750 million.
– 2. 3rd January 2020: The government reveals that it has temporarily suspended the initial public offering on the London Stock Exchange to allow it to modify the rules that will govern the operations of Asaase Royalties Limited.
– fifteenth July 2020 – The government introduces a bill in parliament to amend the Minerals Income Investment Fund (MIIF) law so that any established SPV has unlimited independence and is not required to operate in accordance with the Mineral Income Law. Public Financial Management and the Law of the State Interest Governance Authority.
– 22North Dakota July 2020 – The Attorney General writes to the Minister of Finance expressing concern that the Agyapa Mineral Royalties Investment Agreement (formerly Asaase) is biased against the interests of Ghana, is excessive and will allow a violation of the Banking Law of Ghana.
– 3rd August: Parliament approves the amendment to the Mineral Income Investment Fund (MIIF) Law.
– 10th August 2020 – Asaase Royalties Limited is renamed Agyapa Royalties Limited.
– 12th August 2020: The Attorney General writes to the Minister of Finance after a series of meetings and exchanges of letters, approving the agreement subject to 7 pending amendments.
– 13th August 2020: Government presents Agyapa Minerals Royalty Investment Agreement and 4 related documents in parliament for approval; Speaker refers documents to Finance Committee
– 14th August 2020 – Minority MPs led by Cassiel Ato Forson address the press conference in parliament to demand the withdrawal of the deal that claims it will give private individuals 49% ownership of the country’s mineral royalties, which it will go against the interests of the state.
– 14th August 2020: Parliament’s Finance Committee submits a report to the floor recommending approval of the Agyapa agreement.
– 14th August 2020: Parliament approves the Agyapa deal after minority MPs withdrew.
– 25th August 2020 – 15 civil society organizations (CSOs) address the press conference to demand the suspension of the Agyapa agreement
– 28th August 2020: Finance Minister Ken Ofori Atta addresses the press conference defending the Agyapa deal and announces listing on the London and Ghana stock exchanges will take place in December 2020
– twoNorth Dakota September 2020: Finance Minister meets with CSOs on Agyapa deal as part of additional consultations
