…Details agreement with Ghana’s Minerals Fund, amid allegations of financial mismanagement
Fidelity Bank Ghana Limited, has issued a statement to clarify recent reports concerning its partnership with the Minerals Income and Investment Fund (MIIF), regarding the Gold for Forex programme, which has been ridden with huge losses to the state.
According to Esi E. Mills-Robertson, Director of Marketing at Fidelity Bank, the reports suggesting the seizure of MIIF funds by the bank, are inaccurate.
“Fidelity Bank has not seized any funds from MIIF. The transaction in question pertains to a foreign exchange pre-settlement agreement,” she stated but did not mention the name of the company involved and the amount of money involved in the transaction.
Explaining the nature of the agreement, Mills-Robertson, disclosed that Fidelity Bank, advanced funds to MIIF in Ghana Cedis, with the understanding that MIIF, would settle the equivalent amount in foreign exchange within a stipulated timeline.
“Nature of the Agreement: Under the agreement, Fidelity Bank advanced funds to MIIF in Ghana Cedis, with the understanding that MIIF would settle the equivalent in foreign exchange within a stipulated timeline”.
However, on specific occasions, MIIF, experienced delays in meeting the agreed timelines, according to the statement dated yesterday, Thursday, 23rd January 2025.
She emphasized that, despite these delays, a remediation process was agreed upon, and all outstanding amounts were fully settled by December 2024.
“Delay in Settlement: On specific occasions, MIIF did not meet the agreed timelines. However, a remediation process was agreed upon, and the outstanding amounts were fully settled by December 2024”, it said.
Fidelity Bank reiterated its commitment to the Gold for Forex program, stating, “Fidelity Bank remains committed to its partnerships and the economic initiatives aimed at easing foreign exchange demand. We reiterate that all transactions were conducted within the agreed terms, and there is no basis for claims of funds being seized”.
“We continue to support the objectives of the Gold for Forex program and maintain our commitment to transparency and regulatory compliance”.
The bank’s statement follows a report by The Herald alleging that Fidelity Bank had, in November 2024, seized US$25 million of MIIF’s funds.
The report further claimed that, MIIF, had underwritten an overdraft facility for Goldridge Limited, a gold aggregation company owned by Dr Sledge Nana Yaw Duodu, alias “Sledge,” a well-known figure in East Legon, Accra.
According to the report, MIIF’s loan agreements with Goldridge Limited, led to significant financial setbacks.
It stated that, Goldridge received US$94 million from MIIF for a gold trade aggregation deal but failed to deposit the foreign currency proceeds back into MIIF’s accounts, resulting in losses.
Additionally, Goldridge Limited, reportedly defaulted on its obligations under the overdraft facility, leading to the alleged US$25 million seizure.
The total debt owed by Goldridge to MIIF, is estimated at US$119 million.
MIIF, established under the Akufo-Addo administration to manage the country’s mineral royalties, has come under scrutiny for its lending practices and financial losses some of which have been linked to the Goldridge partnership.
Fidelity Bank, in its statement, reaffirmed its commitment to transparency and regulatory compliance in all its dealings. It also pledged to continue supporting economic initiatives like the Gold for Forex programme, which aims to stabilize Ghana’s foreign exchange market.
MIIF’s officials said to be fully aware are the Legal Manager, Nana Serwaa Owusu; Head of Legal and Compliance, Daniel Imadi; Chief Investment Officer, Bubune Sorkpor; and the CEO, Edward Nana Yaw Koranteng and Board Chairman, Prof. Douglas Boateng.
Interestingly, the same institution—MIIF—was to manage Ghana’s mineral wealth through a subsidiary called Agyapa Mineral Royalty Limited.
A decision to list it on the London Stock Exchange (GSE) was suspended after it emerged that it was ridden with a conflict of interest.
Ken Ofori-Atta, the then-Finance Minister, and Lawyer Gabby Asare-Otchere Darko, both cousins of President Nana Akufo-Addo, privately profited from transactions through their companies, Databank Financial Services and Africa Legal Associates, respectively.
Concerns have been raised about MIIF’s Commodities Trading Programme operationalized in August 2023. While the programme reportedly generated inflows of $1.02 billion between August 2023 and September 2024 from the export of 449,554.99 ounces of gold dore, significant financial losses have been linked to its execution.
Among the questionable expenditures is GHC2.2 billion ($150.6 million) disbursed to aggregators for gold trading, allegedly in violation of the law. This has reportedly resulted in massive financial losses for the state.
Furthermore, GHC240 million was reportedly spent on constructing AstroTurf pitches and a mining museum—projects critics describe as wasteful expenditures.
In November 2024, MIIF allegedly spent GHC84.8 million ($5 million) on an initiative to purchase mining equipment under a “Small-Scale Incubation Project.”
However, the whereabouts of the equipment remain unknown, raising questions about whether the equipment was ever purchased or who the beneficiaries are.
Additionally, GHC1.4 billion ($82 million) has been spent on equity shares in companies such as Asante Gold Corporation, Injaro Ventures Capital Fund, Electrochem Ghana Limited, and Atlantic Lithium.
Despite these controversies, MIIF has touted some successes, including providing $675.73 million in foreign exchange by the end of September 2024. MIIF argues that this has stabilized Ghana’s forex market, supported BDCs in purchasing oil, and contributed to stable fuel prices.
Beneficiary companies, include Juwel Energy Limited, Maranatha Oil Services Limited, Cirrus Oil Services Limited, Dominion International Energy Ltd, Fueltrade Ltd, Matrix Gas, and Petroleum Warehousing and Supplies Ltd.