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A second review of the Mineral Royalty Transaction agreement (Royalties Agyapa Agyapa), if resubmitted to parliament, will seek to engage and consult widely, Finance Minister Ken Ofori Atta said.
Mr. Ken Ofori-Atta, who made an appearance to take his turn at the ministerial inquiry, revealed that a review of the agreement this time will build a national consensus in the interest of the nation.
He said he would address all relevant stakeholder concerns and receive input from the Legislative Chamber.
“Imagine we have this Royalty Company, which in 20 to 30 years becomes a $ 30 billion company, in which we will have a 50 percent stake … imagine putting this balance in the Bank of Ghana, you literally have a reserve currency that changes its economy, “observed Mr. Ofori-Atta.
Mr Ofori-Atta said this when he appeared before Parliament’s Appointments Committee on Thursday for the background check.
In 2020, the Akufo-Addo-led government suspended the Mineral Royalty transaction as a result of public outcry and criticism for a lack of transparency and broad consultation.
Mr. Ofori-Atta stated: “Looking at the new normal in which there seems to be a lot of debt from all countries, what do we do with our natural resources to leverage them into stocks?”
“Philosophically, I hope we all come to terms with the reality of diversification and how we capitalize and finance our nation as we intend to do so,” emphasized Mr. Ofori-Atta.
He noted that resubmitting the agreement will help the country reach a consensus to clear all doubts related to the transaction.
Agyapa Royalties Limited was to receive and manage royalties from 16 gold mining leases over the next 15 years.
It was to trade shares on the Ghana Stock Exchange and the London Stock Exchange with the Mineral Income Investment Fund, being the majority shareholder.
The Company was expected to insure close to $ 1 billion for four key areas, namely education, health, primary capital and infrastructure development.
Future resources from the gold royalties were to go to the shareholders of Agyapa’s Royalties Limited rather than the government.
This was to solve the challenge the government faced in raising capital to finance its development projects without constantly having to borrow from the International Monetary Fund (IMF) or having to rely predominantly on the bond and capital market.
However, the then Special Prosecutor, Mr. Martin Amidu, after conducting a Corruption Risk Assessment on the agreement at the request of President Nana Addo Dankwa Akufo-Addo, recommended that the suspension of the transaction citing lack of transparency and the risk of some of the planned compromises that lead to corruption.
On investment in human capital, Mr. Ofori-Atta said that the well-being of the main gatekeepers (Kayayie) was very important to the Government, hence the investment in irrigation and agriculture projects, aimed at changing the negative narrative of the deprivation and poverty.
The designated minister also answered questions on the economy, investment in human capital, free secondary education policy, plantation program for food and jobs, oil revenues and other important national issues.
The background investigation resumes on Friday, March 26, for the renowned minister, who returned from the United States, over the weekend, after receiving treatment for Covid-19 complications.
However, only the Committee leaders could ask questions as announced by the Chairman of the Appointments Committee of Parliament, Mr. Joseph Osei Owusu, after approximately six hours of investigation.
— GNA
