Gov’t suspends launch of Agyapa IPO

The decision by the Special Prosecutor (SP) to investigate the Agyapa Royalties deal has resulted in the government suspending the launch of the Initial Public Offer (IPO). A letter signed by a Deputy Finance Minister, Charles Adu Boahen, on Monday, October 5 said: “The Ministry does not intend to proceed with the IPO ahead of the results of the corruption risk assessment by your Office. “This was prior to your office’s request for information and production of document.” The letter added: “Kindly note that the document was prepared about two months ago by the transaction advisors to update the Minister on the progress of the transaction. The timing expressed in the document was the intention of the transaction advisors at that time and to launch the IPO by the end of September 2020 to be completed by the end of the year.” The SP announced last week that it has started probing the deal after the Minority raised corruption related issues with the agreement. 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. 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. Some civil society organization groups have also raised questions about the transparency of the deal, demand its immediate suspension for further stakeholder engagement.

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By Laud Nartey||Ghana]]>