Calls for suspension of Agyapa agreement “too late”, unsustainable and unrealistic – Kweku Baako | Politics

Calls from CSOs to suspend the Agyapa royalty deal are “unrealistic” according to renowned journalist Abdul Malik Kweku Baako Jnr.

According to him, his calls should have come earlier when the agreement was before Parliament; that’s before approval, but waiting that long is against the spirit of activism.

An alliance of Civil Society Organizations (CSOs) working in the extractive industries, anti-corruption and good governance has called for the government to suspend the Agyapa royalty agreement until full disclosure is made.

CSO spokesman Dr. Steve Manteaw said the government’s lack of transparency “raises more moral and governance issues. The assumption that once everything is passed in Parliament is legitimate and represents the interests of of all Ghanaians it is misleading and turns democracy on its head. It makes the elected the only relevant stakeholders in policy making. ”

However, Kweku Baako, speaking on the archives show Joy News, believes that “the suspension requests are not sustainable.”

“To be honest with you, where we have come, and I am realistic, the parliament has approved the agreement; I am not quite sure that the call for the suspension of this agreement is realistic or sustainable. It is not going to happen. It comes with many challenges. integrity “, he stated.

“I am an advocate of CSO activism; civil society activism implies that you would be on the alert; that you would be looking for and investigating what is happening; the budget is a public record and there it is said that the government intends to do something like that … I have no problem when they call for a consultation. My problem is when that call was made. “ added.

Ideal situation

Kweku Baako believes that it would have been ideal for the government to involve CSOs before the deal was approved.

“It would have been ideal if the government had involved CSOs, but CSOs must always be vigilant. Activism requires that they are always monitoring what is happening in parliament; they should … but wait for this stage and then make calls to the revocation or suspension, I think it is unsustainable “, added.

Some economic experts and former Finance Minister Seth Terkper have opposed the deal.

Meanwhile, 15 Civil Society Organizations (CSOs) have demanded the speedy suspension of the Agyapa Minerales Royalty Agreement until key documents are revealed.

Agyapa Royalties

Agyapa Royalties is based on a law passed in 2018, the Mineral Income Investment Fund (MIIF) law that seeks to consolidate all potential mineral income in an area.

The government passed the Minerals Income Investment Fund Act of 2018 (Act 978) with the key objective of maximizing the county’s mineral wealth for the benefit of Ghanaians while ensuring that receiving royalties from gold mining companies is sustainable .

The law was amended a couple of weeks ago to allow you to incorporate subsidiaries and use it as an SPV to do business around the world.
The parliamentary approval also included the approvals of four other related agreements between the MIIF, the SPV and other entities with which it would have transactions.

The SPV is Agyapa Royalties Ltd, initially incorporated as Asaase Royalties Ltd, which has been incorporated on a British channel island, Jersey, where it will enjoy tax breaks on the transfer of dividends and other concessions that allow it to retain much of the income that get. generate.

The company will be responsible for managing 75.6 percent of Ghana’s royalties from the 12 gold mining companies currently operating in the country, with four more expected to come online.

It will then be listed on the LSE, but the government, through MIIF, will retain at least 51 percent, while an Agyapa subsidiary, ARG Royalties Ltd, which will be responsible for channeling royalties to its parent company, will be listed on the GSE. , with the government maintaining a similar shareholding structure.

As of 2017, the average royalty income was estimated at GH ¢ 650 million. The Minerals Development Fund got 20 percent of that, the Ghana Revenue Authority got 2.4 percent, and Agyapa’s royalties absorbed 75.6 percent.

But many analysts and political figures have criticized the transaction, claiming that it is intended to allow a few people to have control over the country’s mineral royalties for personal gain.