The Agyapa Royalties deal the Nana Addo Dankwa Akufo-Addo government is seeking to implement has once again become a topical issue, following reports of the government spending over $12 million on the deal despite it being on hold.
Bright Simons, a Vice President of IMANI Africa, has given reasons why the Agyapa deal, which would have affected about 97% of Ghana’s royalties from the country’s mineral resources, must be cancelled as a matter of urgency.
According to Simons, the first reason Ghanaians must fight to ensure that the deal is cancelled is the way it was forced through parliament by the government and its majority in the house.
Speaking in an interview on JoyNews, on Saturday, February 24, 2024, the IMANI vice president said that the government started implementing the deal without approval from the Parliament of Ghana, as required by law.
He said that it was the then Attorney General, Gloria Akuffo, who pointed out that there were so many issues with the deal, including the fact that it must have the approval of parliament.
He said that after Gloria Akuffo criticised the deal, the government used its majority in parliament to force the deal through without any proper scrutiny from the house.
Simons also explained that the government is also going to sell Ghana’s gold rights for $1 billion and the deal had no expiry date or gold deposit restriction, meaning that the investors are going to have control of royalties from future gold mines discovered in the country.
He also said that per the deal, it is the private investors who are going to benefit more after the country’s royalties from its gold resources have been listed on the London Stock Exchange.
“It was not the public market that was going to set the price for Agyapa Jersey. It was the underwriters! And they would have sold to specific investors before the share debuted on the stock market. So, the share price increase would have benefited those investors, not Ghana.
“After the share price appreciation that benefits the investors, Agyapa would subsequently be under the control of so-called independent directors, selected by the deal insiders, who will dictate all dividend & investment policies based on the underlying agreements,” he said.
Watch Bright Simon’s full presentation below:
.@BBSimons' presentation on the $12 million botched Agya Pa deal. #Newsfile pic.twitter.com/qyTC1IK2kz
— Joy 99.7 FM (@Joy997FM) February 24, 2024
About the Agyapa Royalties deal:
In 2020, the government of Ghana proposed a deal which was meant to raise money by floating shares in a company called Agyapa Royalties Limited on the London Stock Exchange.
This deal was met with wide criticism from civil society groups and the opposition, who claimed that it was a secretive and corrupt deal that would allow politicians to enrich themselves at the expense of the country.
Later that year, journalist Kweku Baako said that Gabby Asare Otchere-Darko’s firm had been transaction advisors to the government in the failed deal.
Gabby clarified that a UK-based law firm was the principal advisor on the deal and Africa Legal Associates worked for the firm.
One major issue that has emanated from the brouhaha surrounding the deal is the role of Osafo-Maafo’s son and Gabby Otchere-Darko.
