Finance Ministry engages faith-based organisations, SPC on Agyapa deal

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Finance Minister Ken Ofori Atta

The Ministry of Finance has held separate virtual meetings with the Social Partnership Council (SPC) and the leadership of faith-based organisations (FBOs), as part of its stakeholder engagement and consultations to deepen the understanding of the Agyapa Royalty transaction.

The Social Partnership Council is made up of the Labour Unions, Ghana Employers Association and Government, represented by the Ministries of Finance and Employment and Labour Relations.

The FBOs include the Catholic Bishops Conference, the Christian Council of Ghana, the Ghana Pentecostal and Charismatic Council, the National Associations of Charismatic and Christian Churches and the Ghana Charismatic Bishops Conference.

A statement from the public relations unit of the Ministry said the issues discussed included the nature and benefits of the transaction, ownership, transparency and domain of registration, initial valuation, future prospects, as well as the need to continue to engage with all stakeholders to get their buy-in and support.

Highlight

In his opening remarks, Ken Ofori-Atta, Minister of Finance, provided the background to the Agyapa programme and the need to take advantage of the current all-time high gold prices despite tighter financing conditions due to the COVID-19 pandemic.

He highlighted the weaknesses in the current framework for managing the country’s mineral royalties, which does not allow for the targeted use of and accounting for mineral royalties.

In addition, he explained that the current framework limits the benefits that Ghana derives from its mineral resources, adding that despite centuries of mining and exporting of gold, the mining communities have not seen or benefited in a material way nor had there been any major development in these areas.

The Minister explained that the Minerals Income and Investment Fund (MIIF), which owns Agyapa, “is 100 per cent Ghanaian, Agyapa Royalty is a 100 per cent Ghanaian owned entity until it is listed on the London and Ghana Stock Exchanges, where government plans to sell up to 49percent shares via an Initial Public Offering (IPO).”

Listing

According to him, the shares would be dual listed on the London and Ghana Stock Exchanges.

He also explained that registering the entity in Jersey, the Channel Islands, was very well intentioned, given that a number of international companies, including Tullow and Vodafone, that were listed on the London Stock Exchange were all registered in Jersey.

He said a listing on the London Stock Exchange would ensure that Agyapa Royalty would “abide by the highest standards when it comes to corporate governance and reporting requirements, amongst others,”

The transaction

The statement disclosed that at the meetings, a Deputy Minister of Finance, Mr Charles Adu Boahen, in a presentation, gave an overview of the Agyapa Royalty transaction and how Ghana stands to benefit from the transaction. He also walked the attendees through the process and work that had gone into structuring the transaction from early 2018 to date.

The participants said they were satisfied with the explanation of the transaction, and urged government to ensure that the initiative benefits all Ghanaians, especially those in mining communities.

They also said the transaction is a good one and would beneficial to the people of Ghana.

Members of the Council and faith-based organisations also advised the government to broaden the engagements and consider providing the presentation in local languages so that more Ghanaians could understand it.

Source: dailystatesman.com.gh/Isabella Agyakwa

 

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