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The investment bank, Databank, has pulled out of Agyapa’s controversial royalty deal in which it was expected to mortgage Ghana’s gold mineral resources, in cash, for a period.
The company wrote to the directors of Imara Tara Holdings, one of the foreign firms acting as transactional advisers, to withdraw from the deal.
According to a statement, the decision to withdraw from the agreement was due to attacks on his reputation by political actors due to the association of Finance Minister Ken Ofori-Atta with the firm.
“The Databank Board, while convinced of the immeasurable benefits to be gained by the Republic of Ghana from the transaction, is of the view that the tumult generated by Databank’s involvement in the transaction, coupled with innuendo and reputational sprinkling of the company in the run-up period upon choice, not only does it greatly compromise the ability to execute such a new and market-sensitive transaction, it also has a real tendency to seriously damage Databank’s invaluable business reputation, ”the letter signed by Databank’s Group CEO , Kojo Addae-Mensah, emphasized.
He further said that the decision, although difficult, was necessary because it had to safeguard his integrity.
“It is this deep knowledge of the market and extensive experience that makes us understand that the potential damage from the downfall of all the negative press regarding Databank’s participation in the Agyapa transaction, especially the proposed IPO, despite our excellent track record over the years is invaluable both in national and international financial markets ”.
“The reasons stated above have forced us to make the difficult decision to formally withdraw our services as your partner and co-transaction advisor in this term,” he said.
Brouhaha del Agyapa
Agyapa’s royalty agreement generated so much interest from various sectors due to the alleged conflict of interest controversies, among others.
Some 15 Civil Society Organizations (CSOs) under the general name of Alliance of CSOs that work in Extractive, Anti-Corruption and Good Governance also demanded the immediate suspension of the implementation of the controversial Special Purpose Vehicle, Agyapa Royalties Limited established by the government to through the Rent of Minerals. Investment fund.
Former special counsel Martin Amidu’s assessment of corruption risk on the Agyapa deal also raised red flags on the deal, describing the deal as laden with corruption.
