The CEO of the Minerals Income Investment Fund (MIIF), Edward Nana Yaw Koranteng, has disclosed that the government has spent $12 million on the botched Agyapa royalties deal.
Making the revelation at the sitting of the Public Accounts Committee (PAC) of Parliament on February 13, 2024, the CEO indicated that the Ministry of Finance subscribed to the deal based on advice from international consultants.
The Agyapa royalties deal was aimed at generating funds through mineral royalties to support key infrastructure projects in Ghana. However, it faced significant controversy and was eventually suspended by President Nana Akufo-Addo in 2021 due to concerns raised by civil society groups and the main opposition National Democratic Congress.
He told the Committee, “My understanding, honourable chair, is that the Ministry of Finance procured the services of international consultancy and companies and financial institutions that have done this in the past and that the advice provided was what Ministry of Finance stood on.”
“We started with the Ministry of Finance and from the documents that we have, it is clear that the correct advice was provided on the set-up of a gold royalties company where the streaming of the royalties would benefit Ghana,” he added.
Mr. Yaw Koranteng disclosed that before its cancellation, $12 million had already been expended on its initial public offering on the London Stock Exchange.
He stated that the Ministry of Finance engaged international consultancy firms, companies, and financial institutions with prior experience in such matters. According to him, the advice provided by these entities guided the Ministry of Finance’s decision-making process.
He emphasized that the Ministry of Finance initiated the process, and based on available documents, it appears that the advice received was geared towards establishing a gold royalties company that would benefit Ghana through royalty streaming.