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The government has suspended the planned launch of an Initial Public Offering (IPO) of Agyapa Mineral Royalties Limited.
The Ministry of Finance has explained that the measure is to give the Office of the Special Prosecutor sufficient time to carry out its assessment of the risk of corruption with respect to the transaction.
The decision to stop the process stems from calls from the OSP for more information on the agreement, which will inform the way forward in terms of its benefits for Ghana.
The Special Prosecutor had indicated in a previous letter to the Ministry of Finance that the information provided to him was inadequate.
“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.”
In addition, he urged the Ministry to “abide by the results of the corruption risk assessment that it is carrying out in the transaction before proceeding to the launch of the IPO transaction.”
In the latest twist, the Finance Ministry has given in to the demands of the OSP.
“The Ministry does not intend to proceed with the IPO prior to the results of its Office’s corruption risk assessment.
A letter signed by Deputy Finance Minister Charles Adu Boahene says the move was accomplished before the OSP’s request for more and better details on the deal.
“This was prior to the request for information and document production from his office,” the letter read.
“Please note that the document was prepared about two months ago by the transaction advisers to inform the Minister about the progress of the transaction. The timing expressed in the document was the intention of the transaction advisers at that time and to launch the IPO in late September 2020 to be completed by the end of the year, ”said the Deputy Minister of Finance.
The letter expressed the intention of the Ministry to proceed with the agreement between Agyapa Mineral Royalties Limiter and the government within the limits of the OSP’s assessment.
“The international investment community has been closely monitoring the outcome of the current state of the transaction and therefore it would be detrimental to proceed without receiving the necessary approvals and the green light from your Office,” he said.
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 finance infrastructure projects.
Background
The Minority in Parliament had 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 Royalty agreement and officially wrote to Parliament requesting information on the agreement.
Under the agreement, Agyapa Mineral Royalties Limited has been incorporated in Jersey near the UK to receive and administer royalties from 16 gold mining leases over the next 15 years or so.
In return, the firm will be listed on the London and Ghana stock exchanges later this year and will raise at least $ 500 million for the government to invest in infrastructure, healthcare and education.
The listing will allow individuals to buy a 49% stake in the company.
