Minister-Designate for Finance Ken Ofori Atta has stated the Agyapa deal is a clean transaction and will inject capital into the economy which has suffered a heavy blow from the covid-19 pandemic.
The minister-designate re-emphasized this when he took his turn with the Parliamentary Vetting Committee, Mr. Ofori-Atta said the Agyapa deal is the best way to go to give life to the broken economy financially.
This is in line with President Akufo Addo’s position to resubmit the Agyapa Royalties Transaction to parliament for scrutiny and approval as stated in his first State of the Nation Address for his second term.
The minister-designate said “I think one thing I need to note is truly the basis of that transactions was an act that was passed which was thoroughly debated, and we did not really move away from any rebate of that act. I think it is all of us looking at the state of the economy with a new normal, which seems to be global, with regards to debt and, we looking to inject liquidity into the way in which the country grows”.
Mr. Ofori-Atta noted the government is on the right course with the deal “but if you look at the powers of the fund (Mineral Income Investment Fund), this august house has through Act 978 of the Fund make way and hold equity interest in a Special Purpose Vehicle, procure the listing of the Special Purpose Vehicle on any reputable stock exchange, assign or transfer any rights of its mineral income for the Special Purpose Vehicle. So I think we are on the right course”.
He stressed that the Special Prosecutor’s report on the deal has done a great disservice to our democracy, as he the finance minister was not allowed to discuss it. The report revealed the Transaction Advisors in the deal were susceptible to “nepotism, cronyism, and favoritism”. The minister opinioned, the report of the Special Prosecutor could have been different.
He stated, “I think, really, there’s quite a bit of cynicism about that transaction [Agyapa Royalties] and for me, for the house [Parliament], for such a report to be put out in the public without us or myself, as Minister of Finance having a chance to discuss it, I think it’s a disservice to our democracy and that is such a fundamental right that I think we, all, as a people, should be careful about such things”.
He also emphasized that “the speculative issues and the risk associated with most transactions, discussions by resubmitting to parliament, will enable us to work those things out”.
“We should also note beyond that and the reason I brought the Act out because the Act was well-debated and put into motion. I think risks are part of every investment that you make and parliament gives me the onus, the mandate to go and raise bonds – $2 billion, $3 billion with all sorts of risks – and, so far, these three years, we have brought the best pricing under what comparable countries could enjoy” he concluded.
However it would be recalled that last year, parliament in line with the Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978), approved agreements to allow the country to derive maximum monetary gains from its mineral resources and monetize its future mineral income, this gave rise to the Agyapa Royalties Transaction Limited. It was aimed at securing about $1.0 billion but was withdrawn due to pressure from CSOs and Ghanaians as a whole.
Filed By : Agaatorne Douglas Asaah / awakenewsroom.com
