Energy analyst and Chief Executive Officer of African Energy Consortium Limited, Kwame Jantuah says he was taken by the comments by President Nana Akufo-Addo to return the controversial Agyapa deal to Parliament.
Delivering the State of the Nation Address on Tuesday, President Akufo-Addo said “the government will come back to engage the House on the steps it intends to take on the future of the Agyapa transaction.”
The botched deal was flagged as corruption laced by former Special Prosecutor Martin Amidu. Mr Amidu resigned from the post citing interference in his corruption risk assessment of the deal by the President.
Speaking on Morning Starr on Wednesday, Mr Jantuah who is also a member of the CPP said he was shocked by the confidence with which the president made those comments.
“I was aghast when the president said what he said and the confidence with which he said it with. I was taken aback…maybe Agyapa will come back in a different form so let’s wait and see.”
About the Agyapa deal
Parliament on August 14th approved the controversial Agyapa Mineral Royalty Limited agreement with the government of Ghana despite a walkout by the Minority.
Two years ago, the House 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 supposed to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country.
The law allows the fund to establish Special Purpose Vehicles (SPVs) to use for the appropriate investments. Last month, the government introduced an amendment to the act to ensure that the SPVs have unfettered independence.
The approval will enable the country to use a special purpose vehicle, Agyapa Royalties Limited to secure about $1 billion to finance large infrastructural projects.
In line with that, Agyapa, which will operate as an independent private sector entity, will be able to raise funds from the capital market, both locally and internationally, as an alternative to the conventional debt capital market transactions.
The funds, which are expected to be raised from the Ghana Stock Exchange (GSE) and the London Stock Exchange (LSE), will be long-term capital, without a corresponding increase in Ghana’s total debt stock and hence without a public debt repayment obligation.
Special Prosecutor on Agyapa
Special Prosecutor Martin Amidu has called on the Finance Ministry to hold on with its scheduled initial Public Offer (IPO) on the Agyapa royalties deal until he is done with his corruption risk assessment on the transaction.
“This Office would have wished to complete its corruption risk assessment on the Agyapa Royalties Transaction soonest but for the non-submission of the information and documents pending to be submitted by your Ministry. The information and documents you supplied concerned mainly the processes for and the appointment of the Transaction Advisors which goes to the root of any corruption risk assessment,” Mr Amidu said in a letter to the Finance Ministry.
The letter added: “Information and documents relating to the identification and recommendation by the transaction advisors to your Ministry for appointment a list of other services providers and or underwriters that may be required to complete the transaction as provided in clause 2.2.1 of the mandate agreement amongst others, that are critical to any through corruption risk assessment are also outstanding. The legal opinions, particularly of the principal legal advisor to the government under the Constitution, are relevant to ensure compliance with her recommendations as part of any corruption risk assessment.”
“In the circumstances, this Office wishes to urge you to abide by the results of the corruption risk assessment it is undertaking on the transaction before moving to the launching of the IPO transaction. This Office makes this suggestion on the grounds of prudence on your part and to also not give the impression that the mandate of this Office on prevention of corruption is of no consequence to the transaction,” it noted.