Pause Agyapa Deal IPO - Amidu to Ken Ofori-Atta
The Special Prosecutor, Martin A.B.K. Amidu has charged the Finance Minister to hold on to its proposed initial public offer for the Agyapa Royalties Deal.
Ghana’s Special Prosecutor Martin Amidu has advised the Finance Ministry, to pull the brakes on its proposed initial public offer on the controversial gold royalties deal, Agyapa.
This request on Tuesday was made following a corruption risk assessment on the transaction.
The Agyapa Deal is part of the ruling government’s strategy to tackle the long-standing problem of lack of capital for developmental projects.
Successive governments have resorted to funding by either approaching the IMF, the international bond market, or the capital market.
The deal started in June 2018 when Parliament passed the Minerals Income Investment Fund (Act 2018) to manage the equity interests in mining companies and also receive royalties on behalf of the government of Ghana.
“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.”
The letter continued that: “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 added.