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Atik Mohammed has waded into discussions over the government's Agyapa Royalties deal which involves the floating of minerals' shares to investors to maximize the mining sector.

Parliament approved five agreements on Friday, August 14, 2020 to allow Agyapa Royalties Ltd, a Special Purpose Vehicle, to secure about $1 billion for Ghana's minerals sector.

The deal is to permit Agyapa Reyalties Ltd to operate as an independent private sector entity and raise funds from the Ghana Stock Exchange (GSE) and London Stock Exchange (LSE).

The Agyapa Royalties deal is intended for the country to gain maximum value from its mineral resources by monetizing its mineral income in accordance with the Minerals Income Investment Fund (MIIF) Act of 2018 (Act 978).

Agyapa Deal Controversies

The Minority in Parliament and opposition National Democratic Congress (NDC) have raised issues about the deal.

They claim the deal lacks transparency and is clothed with corruption, hence threatening to petition the London Stock Exchange.

“We will today [Tuesday] put the London Stock Exchange and the Financial Conduct Authority on notice that this agreement does not meet the minimum requirement of diligence and transparency and minimum requirements of our constitution.

“The Minority wish to state emphatically that the SPV and its accompanying agreements as structured by the current Government is not just opaque but inimical to the interest of the Republic of Ghana. We therefore wish to completely disassociate ourselves with the proposed relationship agreement and subsequent flotation of shares on the London Stock Exchange,” the Minority stated.

The Minority Leader, Haruna Iddrisu briefing the press about the deal further stated that "the Minister of Finance in presenting this deal is in breach and a clear violation of the law and is required to have reported this deal with full disclosure in his 2020 Supplementary budget to Parliament. Our position is that no future NDC government will honor the terms of this Agyapa Royalties Transaction''.

Former President and NDC flagbearer, John Dramani Mahama also says if elected as President again, his government will not respect the deal.

“We will do everything legitimately in our power to oppose the agreement and make sure it doesn’t happen”, he said during a tour of the Upper West Region.

Atik's Position On The Deal

Making his submisisons on Peace FM's ''Kokrokoo'', Atik Mohammed says he agrees with the establishment of the Minerals Income Investment Fund to maximize the minerals value of the economy.

According to him, the intent to set up the fund to handle the gold proceeds is a brilliant idea.

''In principle, I agree with the idea to set up a fund. And when you look at the Act to set up that fund, Section 2 is very clear on what we want to use the fund for and it is to maximize the minerals income which [you know] broadly speaking is a brilliant idea. It is great.''

However, he shares a contrary view with the government to trade the gold royalties aimed at boosting the mining and infrastructural sectors.



To him, the government should, instead of floating the shares for the royalties, rather ensure an effective cost audit from the gold companies in the country to receive transparent accounts of the gold proceeds that the companies make as against the benefits that the country derives from them extracting the country's gold.

''They always say they don't make profits but continue to do business. How can you not make profits but still be working for the past seven years and more?'' he questioned.

He noted that the government knowing the actual profits against the cost that the gold companies incur will help it to determine the gold earnings each year and therefore float shares on the gold earnings, not the royalties paid to Ghana.

He held it will be more beneficial to list the gold earnings in the stock market than to use the royalties.