The Minority in Parliament intends to write to the London Stock Exchange (LSE) and the Financial Conduct Authority regarding concerns they have over the Agyapa Royalties Investment Ltd, a special purpose vehicle (SPV) which the country hopes to use to float shares before the end of the year.

Addressing a press briefing today (September 1, 2020), in Accra, the Minority Leader, Mr Haruna Iddrisu said the opposition was concerned about the lack of transparency and conflict of interest which it says “runs through the structuring of the agreement”.

He also reiterated the position of the flagbearer of the NDC, Mr John Mahama that the party would not honour the terms of the agreement if they win power.

“We will, after today’s press conference, put the London Stock Exchange and the Financial Conduct Authority on notice that this agreement does not meet the required due diligence and transparency, and a substantial level of conflict of interest runs through the structuring of the agreement. The Agreement, is, therefore, tainted with some corrupt acts,” Mr Iddrisu said.

“The Minority wishes 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 further serve notice that a future NDC government will have no choice but to review the Relationship Agreement and the other accompanying approvals”.

Mr Iddrisu said the decision to mortgage the country’s “future mineral royalties in perpetuity is grossly inimical to the interest of the people of Ghana”.

“This deal fails to enhance public welfare. Our analysis shows clearly that Ghana stands to lose billions of United States Dollars in revenue as a consequence of this illegal transaction.

“This is because annual gold royalties from the mining sector amounts to about USD200 Million on the average. It makes no economic sense, therefore, to mortgage these receivables to an opaque Special Purpose Vehicle (SPV) in exchange for an upfront amount of just US$500million”.

Source: Graphic.com.gh