Minority to report Agyapa Royalties deal to London Stock Exchange

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The Minority in Parliament intends to report the “risky” Agyapa Royalties deal to the London Stock Exchange.

Aside from issues with transparency, the Minority has raised conflict of interest issues with the deal.

At a press conference on Tuesday, September 1, 2020, the Minority Leader, Haruna Iddrisu insisted that the deal is “tainted with some corrupt acts.”

“We will, after today’s press conference, put the London Stock Exchange and the Financial Conduct Authority on notice that this agreement does not meet the required due diligence and transparency, and a substantial level of conflict of interest runs through the structuring of the agreement,” he added.

The Minority boycotted the approval of the deal in Parliament and maintained that it is “inimical to the interest of the Republic of Ghana.”

“We, therefore, wish to completely disassociate ourselves with the proposed relationship agreement and subsequent flotation of shares on the London Stock Exchange and further serve notice that a future NDC government will have no choice but to review the Relationship Agreement and other accompanying approvals.”

The Minority also called for an independent probe of the valuations of royalty rights in the Agyapa Royalties deal.

With the concerns raised, the Minority served notice that a future National Democratic Congress government will not honour the terms of the Agyapa deal.

Parliament passed the Minerals Income Investment Fund Act 2018 which establishes the Fund to manage the equity interests of Ghana in mining companies and receive royalties on behalf of the government.

The fund is to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country.

The government then, through the Minerals Income Investment Fund (MIIF), set up Agyapa Royalties Limited to monetise Ghana’s gold royalties.

This was after Parliament on August 14, approved the Agyapa Mineral Royalty Limited agreement with the government of Ghana despite the walkout by the Minority.

In exchange, the company plans to raise between $500 million and $750 million for the Government on the Ghana and London Stock exchanges to invest in developmental projects.

Source: Citinews

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