…As Auditor-General goes to bed on transaction
The Mines and Energy Committee of Parliament, has formally requested detailed information and supporting evidence from the Chief Executive Officer (CEO) of the Minerals Income Investment Fund (MIIF) regarding the reported government expenditure of $12 million on the Agyapa Royalties deal.
In a letter dated February 20, 2024, the Committee expressed its concern over public discourse and publications surrounding the alleged expenditure, seeking guidance on the appropriate steps to take.
The letter, signed by Senior Assistant Clerk, Benjamin Tachie Antiedu, emphasized the need for MIIF to furnish the Committee with relevant information by Tuesday, February 27, 2024.
“In reference to the above, I am directed by the Chairman of the Committee to request you to furnish the Committee on Mines and Energy with information on the alleged expenditure of US$12 million expended by MIIF on Agyapa Royalties with supporting evidence, if any. The Committee expects the information to be delivered to its Secretariat by Tuesday, February 27, 2024.
“The purpose of this request is to guide the Select Committee on the appropriate steps to take in respect of the allegation,” the letter signed by Tachie Antiedu said.
The Committee’s demand, follows a disclosure by MIIF CEO Edward Nana Yaw Koranteng, during an appearance before Parliament’s Public Accounts Committee, revealing that the government spent $12 million on the suspended Agyapa royalties deal.
Mr Koranteng, clarified that the expenditure was directed towards the Agyapa Special Purpose Vehicle, consultancy fees, office rental, and processes leading to the initial public offering on the London Stock Exchange.
The controversy surrounding the Agyapa Royalties deal, has been further fueled by additional documents obtained by The Herald from the British tax haven of Jersey. These documents shed light on the transaction that led to the resignation of Ghana’s first Special Prosecutor, Martin Amidu, after calling President Akufo-Addo, “the mother serpent of corruption”.
The Memoranda of Association, as per The Herald’s obtained documents, indicate potential misappropriation, raising concerns of financial losses to the state. Legal analysts view this development as one of several instances that could prompt criminal investigations and prosecutions.
The Agyapa Royalties deal, initially proposed to generate funds for crucial infrastructure projects through mineral royalties, was suspended by President Nana Akufo-Addo in 2021, due to concerns raised by civil society groups and the main opposition National Democratic Congress (NDC).
The $12 million expenditure reportedly occurred during the deal’s initial offering on the London Stock Exchange.
The revelations from the Jersey Company Registry documents implicate key figures, including Ghanaians like Yaw Baah, Felicia Ashley, and George Mireku Duker, along with foreign individuals such as Tom Williamson, Donna Laverty, and James Bore, in various roles related to Agyapa Royalties.
There was a groundswell of controversies over Agyapa Royalities’ conflicts of interest situation, as well as concerns that Ghana was not going to get value for money in the transactions.
The Akufo-Addo government had to remain tight-lipped on the names of directors and their nationalities saying it would jeopardize the transaction.
Among other things, it engaged the services of several law firms, including a Britain-based White & Case LLP International Law Firm in the deal, but the involvement of Africa Legal Associates, a law firm owned by President Akufo-Addo’s cousin, Gabby Asare Otchere-Darko, got Ghanaians enraged leading the deal’s suspension.
Parliament’s demand for clarity through the summons aims to provide transparency and guide further actions regarding the alleged $12 million expenditure on the Agyapa Royalties deal.
Again, Agyapa, which is registered in a tax haven, was to be managed by Kofi Bosompem Osafo-Maafo, the son of ex-Senior Minister Yaw Osafo Marfo and a Deputy Director-General at the Social Security and National Insurance Trust (SSNIT) in charge of Investment & Development.
Aside from the services of Britain-based White & Case LLP International Law Firm, Accra-based Bentsi-Enchill, Letsa & Ankomah, and Africa Legal Associates were in the deal.
In a surprising turn of events, in February 2021, the then Finance Minister-designate, Ken Ofori-Atta’s investment and brokerage firm, Databank, withdrew as a financial advisor in the Agyapa royalties deal.
Databank, along with Imara Holding Limited of South Africa, had jointly served as transaction advisors for the monetization of Ghana’s gold royalties through the dual listing of the Agyapa Gold Royalties Company on the Ghana and London Stock Exchanges.
But the US$12 million might just be the tip of the iceberg as the Auditor-General has, according to Kofi Adams, the Member of Parliament of Buem and a member of PAC, not captured the Agyapa Royalties deal in his report three years since it collapsed.
A Memoranda of Association, as per The Herald’s obtained documents, revealed that Agyapa Royalties was registered as a private company under Jersey’s Companies (Jersey) Law 1991, limited by share, a par value company with an unrestricted corporate capacity limited. Intriguingly, the MIIF is linked to Agyapa with the address given as Ministry of Finance, Finance Drive Accra, Ghana.
According to documents from Jersey, the idea for Agyapa Royalties was conceived in October 2019, with the Jersey Financial Service Commission assisting in the company’s setup.
Originally established as Asaase Royalties Limited, it later changed its name to Agyapa Royalties Limited on August 10, 2020. Records from the Jersey Company Registry, show Agyapa’s registration number as 130211, dating back to November 05, 2019, when it was established as Asaase Royalties Limited.
The share capital of Agyapa Royalties is divided into 500,000,000 ordinary shares of USD 0.01 each.
On August 10, 2020, another certificate of incorporation surfaced, changing the company’s name, while maintaining its registered number as 130211, according to the Registrar of Companies in Jersey Channel Island.
The Registrar of Companies in Jersey Channel Island certified this change, stating, “I hereby certify that Asaase Royalties Limited…having changed its name by special resolution, has today been entered on the Register of Companies incorporated in Jersey as a private company having the name of Agyapa Royalties Limited. Dated this 10 August 2020”.
Ghanaians involved in the deal, as listed in the documents, include Yaw Baah, Felicia Ashley, and George Mireku Duker.
However, an anomaly arises as George Mireku Duker’s role as the Deputy Minister of Lands and Natural Resources Ministry, was not identified in the documents. He rather mentioned his role as the MP for Tarkwa-Nsuaem and addressed as Parliament House.
While, Tom Williamson was captured as secretary to the company in another document dated January 2, 2020, one other document had names such as Donna Laverty and James Bore, and identified them as authorized signatories.
Last week, The CEO of MIIF, Mr. Koranteng, disclosed to the Public Accounts Committee (PAC) of Parliament that the Akufo-Addo government spent US$12 million on the failed Agyapa royalties deal.
The Agyapa Royalties deal, which aimed to generate funds for crucial infrastructure projects through mineral royalties, was halted by President Nana Akufo-Addo in 2021, following concerns raised by civil society groups, experts and some members of the opposition National Democratic Congress (NDC). Before its cancellation, US$12 million had already been utilised for its initial public offering on the London Stock Exchange (LSE).
