Mahama: NDC will vigorously oppose Agyapa royalties deal

Former President John Mahama has reiterated his opposition to the Agyapa minerals royalties deal.

“I can assure Ghanaians the National Democratic Congress (NDC) will oppose the deal vigorously,” he said.

Former President Mahama also reminded of his comments on the issue at his presentation during the ‘Ghana at a Crossroads’ lecture.

He asked the government to clarify reports which were rife in the investment community it intends to use the Heritage Fund as collateral to raise a $2billion loam from consortium of banks and cautioned that if it turned out to be the truth the NDC would vehemently oppose the same way it opposed the Agyapa deal.

This was after the Minerals Income Investment Fund which set up Agyapa Royalties Limited and the government through the Minerals Income Investment Fund to securitise the country’s gold royalties was reported to have stated redesigning its strategy for listing the Agyapa minerals royalties on the London Stock Exchange and the Ghana Stock Exchange.

According to the former president,“the government must clarify reports which are rife in the investment community it intends to use the Heritage Fund as collateral to raise a $2 billion loan from a consortium of banks but the NDC wishes to serve notice if this turns out to be true, we in the NDC will oppose it vigorously in the same way we opposed the Agyapa deal.

“We cannot support the collateralisation of every single source of future revenue just to finance today’s consumption due to renewed apprehension following Ken Ofori-Atta, the Minister of Finance hinting at the government’s intention to pursue the deal,” Former President Mahama cautioned.

Under the deal, Ghana was to own 51 per cent of the Jersey-based company Agyapa Royalties Limited, the remaining shares will be listed on the London Stock Exchange, in return for securitising the future revenues, the government has contented it can raise at least $500 million in capital to ease their growing debt crisis and invest in developmental projects by listing the remaining 49 per cent of shares.

However, the government was criticised for not being transparent with the deal and subsequent corruption risk assessment by Martin Amidu, former Special Prosecutor.


Credit: Ghanaian Times

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