What was your position when Ghana Gold Company was set up?

Gabby Asare Otchere-Darko, a mastermind of the PDS/Agyapa scandals, has suggested that former President John Dramani Mahama is hypocritical over the trending Agyapa scandal because the Atta-Mills administration, under which Mahama was Vice President, set up the Ghana Gold Company.

According to him, the Ghana Gold Company was set up under the Finance Ministry in 2010-11 to hold and monetize Ghana’s gold royalties.

“It will be interesting to know what Vice President @JDMahama’s position was when his government set up the Ghana Gold Company (Committee) under the Minister of Finance in 2010/11 to hold and monetize our gold royalties. Does he remember the 2011 budget which proposed this?” he asked on his Twitter timeline.

On November 18, 2010, Dr Kwabena Duffuor, the then Minister of Finance and Economic Planning, when he presented the 2011 budget stated: “Currently, Ghana has shares and carried interest in a number of mining companies that enables [the] government to receive significant cash flows from royalties and dividends. The current increases in gold prices, increased demand for gold exposure by investors, and the appreciation in the equity interests in the gold-mining companies present a unique opportunity for the government to consider the monetization of all or portions of its gold interests to deliver a significant capital sum to support the nation’s growth and development.

“Beginning in [the] fiscal year 2011 therefore, [the] government will commence discussions on the establishment of a national vehicle, the Ghana Gold Company (GGC), which will hold the country’s gold royalties and equity interest. The GGC will be a newly incorporated company that will be 100 per cent owned by the government and into which the government will transfer its gold equity and interests.”

Former President Mahama has stated that when he wins the presidential election in December, his “government will not respect the [Agyapa] deal” which, according to him, was shrouded in secrecy.

John Dramani Mahama argued: “The Ghana Infrastructure Investment Fund (GIIF) could have played the same role as Agyapa if the Akufo-Addo led government wanted to be transparent.

“This President is not willing to fight corruption. Depending on whom you are in his administration, you can do whatever you want and get away with it because he will personally clear you and say that nothing untoward has happened.”

Agyapa Minerals Royalties deal

Parliament of Ghana on Friday, August 14, 2020, approved five agreements that allow the country to derive maximum value from its mineral resources and monetize its mineral income sustainably and responsibly, in line with the Minerals Income Investment Fund (MIIF) Act of 2018 (Act 978).

The act enables the country to use Agyapa Royalties Limited, a Special Purpose Vehicle, as a conduit for securing 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 are expected to be raised from the Ghana Stock Exchange (GSE) and the London Stock Exchange (LSE).