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The Special Prosecutor’s Office has recommended to the government to halt the planned launch of an Initial Public Offering (IPO) regarding the Agyapa royalty agreement.
According to Martin Amidu, the move is to give his team the opportunity to conclude its ongoing corruption risk assessment.
The government says the new agreement is expected to allow the country to use a special purpose vehicle (SPV), Agyapa Royalties Limited, to secure around $ 1 billion to fund infrastructure projects.
But the OSP, in a letter addressed to the Ministry of Finance, explained that “the non-presentation of the information and documents pending delivery by your Ministry.
“The information and documents he provided related primarily to the processes and appointment of the Transaction Advisors, which is at the root of any corruption risk assessment.”
The minority in parliament has demanded the withdrawal of the contract with Agyapa Mineral Royalties Limited for what they believe is an opaque attempt by the NPP-led administration to divert public funds for their parish interest.
The Special Prosecutor, in September, launched an investigation into the controversial Agyapa Mineral Royalties agreement and officially wrote to Parliament requesting information on the agreement.
In a letter dated September 10, 2020, addressed to the Secretary of Parliament, the Special Prosecutor said that his investigation is carried out in compliance with the mandate of his Office to exercise the functions and powers of prevention of corruption.
But in a recent letter, PASB has denounced the Ministry of Finance’s inability to provide it with the relevant documents needed to facilitate key aspects of the ongoing investigation.
Based on these, Mr. Amidu believes that it will be a premature decision to go ahead with the IPO launch without clarifying the small details related to the SPV.
“This Office wishes to urge you to comply with the results of the corruption risk assessment that you are conducting on the transaction before proceeding to the launch of the IPO transaction.
“This Office makes this suggestion out of prudence on its part and not to give the impression that this Office’s mandate on the prevention of corruption has no implications for the transaction.”
The letter also gave some details on the documents required to see through the ongoing corruption risk assessment that have not yet reached the OSP.
The OSP requires “information and documents related to the identification and recommendation of transaction advisers to your Ministry for appointment.”
You also want to be provided with “a list of other service providers and / or subscribers that may be required to complete the transaction as provided in clause 2.2.1 of the mandate agreement, among others.”
“The legal opinions, particularly of the government’s main legal adviser under the Constitution, are relevant to ensure compliance with its recommendations as part of any corruption risk assessment,” the letter also stated.
The agreement said to be in line with the Minerals Income Investment Fund (MIIF) Act, 2018 (Law 978), was approved without the support of the Minority in Parliament.
Some CSOs in the country have already expressed concern about what they describe as the lack of openness and transparency that has characterized the transaction, a position that the government has vehemently justified.
Deputy Finance Minister Charles Boahene has said that the money raised from the Agyapa royalty deal will be invested in key infrastructure projects in the country, with a special focus on mining communities.
“We want to focus on investing in 4 broad key areas. Primary capital expenditures on education, healthcare, housing and infrastructure, ”he said at a press conference on August 28, adding that these investments will help create more value along the gold value chain.
