…Freezes process amid fraud allegation
The Economic and Organised Crime Office (EOCO), has frozen the acquisition process of the Prestea-Bogoso Mine by Heath Goldfields Limited, citing ongoing investigations into alleged fraudulent activities surrounding the transaction.
In a letter dated December 23, 2024, EOCO, requested the Minerals Commission, to produce documents and provide information related to the registration process of the acquisition.
Insiders told The Herald that, some people wrote a petition to EOCO, alleging that the whole transaction was fraudulent. The investigation is to ascertain whether the transaction is fraudulent or not.
The Minerals Commission was thus given the 23rd of December to produce the documents. However, owing to the holidays, the Commission, pleaded for time to produce them by Wednesday January 8, 2025.
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EOCO, specifically asked for details concerning the acquisition by Heath Goldfields Limited and any other documents related to the mine’s transfer.
The investigation, initiated by EOCO, seeks to uncover the veracity of the acquisition and whether it was carried out through fraudulent means.
As part of its investigation, EOCO, has requested the cooperation of the Minerals Commission, asking officials to report to the Executive Director of the office or their representative to provide the necessary documents and information.
In accordance with Section 33 of the Economic and Organised Crime Act, 2010 (Act 804), EOCO has imposed a freeze on the acquisition process, halting further transactions between the companies involved until the investigation is concluded.
This action, follows concerns regarding the legitimacy of the acquisition of the Prestea-Bogoso Mine, a significant asset in Ghana’s mining sector.
The Executive Director of EOCO, Mrs Maame Yaa Tiwaa Addo-Danquah, who signed the directive, also requested immediate compliance from the Minerals Commission, emphasising the importance of resolving the issue promptly.
The freezing of the acquisition process comes after the current managers of the mine, Blue Gold Bogoso Prestea Limited raised red flags over the process, alleging it was being yanked off the business for no apparent reason.
Interestingly, the Ghana Mineworkers’ Union (GMWU) of the Trade Union Congress, Ghana, has commended the government’s decision to issue the mining leases of the Bogoso/Prestea Mines to Heath Goldfields.
Heath Goldfields, took over the Bogoso Prestea Mines from Future Global Resources (FGR), owners of Blue Gold International, in November 2024.
The Union, had expressed excitement about the decision of the government and pledged its firm support and commitment to work with Heath Goldfields to turn around Bogoso/Prestea Mines.
This was contained in a statement signed by Mr Abdul-Moomin Gbana, the General Secretary, GMWU, copied to the Ghana News Agency (GNA).
“The Ghana Mineworkers’ Union is now convinced that the Bogoso/Prestea Mines are in a good position to receive the needed capitalisation that will revamp the mines and reposition them on the path of growth and sustainability,” he said.
The Union, said it was deeply convinced that the government had diligently acquitted itself in accordance with the laws of Ghana to terminate the mining leases held by FGR/Blue Gold to Heath Goldfields.
“The Ghana Mineworkers’ Union rejects all claims orchestrated by FGR/Blue Gold seeking to impugn and undermine every effort of the government and other relevant stakeholders targeted at revamping the Bogoso/Prestea Mines,” the statement said.
The FGR, acquired the Bogoso Prestea Mines from Golden Star Resources in October 2020, but due to financial constraints, the mine ceased operations in December 2023.
As of December 2023, the operations of the FGR Bogoso Prestea Mine came to a halt when the Volta River Authority and GRIDCO cut power to the mine’s operations due to the former’s indebtedness.
Since December 2023, the incomes and livelihoods of over 1,000 direct and indirect workers have ceased, thus imposing untold hardship on the Unions’ members and their families.
It said statutory payments, including Tier 1, Tier 2, and the provident fund of the workers, have been in arrears since 2021. Aside from its indebtedness to workers, FGR is also heavily indebted to regulatory and government agencies, local suppliers, and vendors in excess of $60 million.
The Union had persistently submitted complaints and petitions to the Minerals Commission about the inability of FGR to inject capital into the business. Based on the Minerals Commission’s periodic inspection visits, it became glaring that FGR did not have the financial capacity to run the mine.
