A Deputy Minister of Finance, Charles Adu-Boahen, has said Ghana stands to benefit from the Agyapa Royalties agreement.
He explained that the country will benefit from the Royalty flows from the company for developmental projects.
Ghana’s legislature approved the controversial Agyapa Mineral Royalty Limited agreement Friday, August 14 despite a protest from the Minority.
Based on the agreement, Agyapa Royalties Limited (ARL) will trade shares on the Ghana Stock Exchange and the London Stock Exchange for private people to buy. But the Mineral Income Investment Fund(MIIF) will remain the majority shareholder.
ARL will raise between $500 million and $750 million for government to use for developmental initiatives, and then future resources from gold royalties will go to ARL shareholders instead of the Mineral Investment Fund and, for that matter, government.
Essentially, government is mortgaging expected royalties from gold in exchange for about $500 million – $750 million from ARL.
The Minority said the deal makes it impossible for a future government to replace managers of Agyapa Royalties Limited although the Minerals Income Investment Fund will remain the majority shareholder.
The flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, also questioned the deal and said he will not recognize it in case he wins this year’s polls.
But Mr Adu-Boahen told TV3’s News 360 Tuesday, August 25 that “this entity is being listed on the back of royal flows. Royalty flows are taxes that the mining companies pay as a tax to government. Government then utilizes money for budgetary purposes.
“In listing this company, we are actually giving investors direct exposure to the mining company.”
By Laud Nartey|3news.com|Ghana