Minister-Designate for Finance, Ken Ofori-Atta during his vetting before Parliament’s Appointment Committee indicated that, Government worked hand in hand with the 7th Parliament on all matters related to the “Agyapa Gold Royalties Deal”.
According to him, the Akufo-Addo led government’s collaboration with Parliament initiated the “Minerals Income and Investment Act, 2018 (Act 978)” and its subsequent amendment, “Minerals Income and Investment (Amendment) Act 2020, (Act 1024)”.
“I think one thing that I need to note is that truly the basis of that transaction was an Act passed and thoroughly debated and we did not rarely move away from any edicts of that Act” “If you look at the powers of the fund which this august House passed, Act 978, section three (3), the fund may create and hold equity interest in a special purpose vehicle, procure the listing of the special purpose vehicle in any reputable stock exchange, assign or transfer any rights of its mineral income. The challenge for all of us is as you look at the new normal in which there seem to be quite a bit of debt by all countries, what do we do with our natural resources to leverage it into equity” the Finance Minister Designate said.
Parliament of Ghana passed the Minerals Income Investment Fund Act 2018 which establishes the Fund to manage the equity interests of Ghana, in mining companies and receive royalties on behalf of the government.
The fund is supposed to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country.
The funds, which are expected to be raised from the Ghana Stock Exchange (GSE) and the London Stock Exchange (LSE), will be long-term capital, without a corresponding increase in Ghana’s total debt stock and hence, no public debt repayment obligation.