Parliament has approved the controversial Agyapa Mineral Royalty Limited agreement with government despite a walkout by the Minority.
Two years ago, Parliament passed the Minerals Income Investment Fund Act 2018.
The act establishes the Minerals Income Investment Fund to manage the equity interests of Ghana in mining companies, and receive royalties on behalf of 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 law allows the fund to establish Special Purpose Vehicles (SPVs) to use for the appropriate investments. Last month, government introduced an amendment to the act to ensure that the SPVs have unfettered independence.
Below is a timeline that defined the controversial deal thus far
– 28th September 2018 – Parliament at the end of a one-week emergency sitting approves Minerals Income Investment Fund (MIIF) Bill 2018 to allow government to set up MIIF to receive royalties from mineral resources and invest them. The bill allows for the creation of a special purpose vehicle (SPV) in any jurisdiction for use to undertake such investments.
– 3rd December 2018 – President signs MIIF bill into law.
– 7th October 2019 – Presidents inaugurates board of MIIF chaired by MP for Tarkwa-Nsuaem George Mireku – Duker.
– 5th November 2019 – Government through MIIF incorporates Asaase Royalties Limited with the Jersey Financial Services Commission in Bailiwick of Jersey, a tax-haven, independent Channel Island near UK.
– 15th November 2020 – Finance Minister Ken Ofori Atta announces plans to list Asaase Royalties Limited on London Stock Exchange in January 2020 to raise $750 million.
– 23rd January 2020 – Government discloses it has temporarily suspended initial public offering on London Stock Exchange to allow for it to amend rules that will govern operations of Asaase Royalties Limited.
– 15th July 2020 – Government lays bill in parliament to amend the Minerals Income Investment Fund (MIIF) law so that any SPV established would have unfettered independence and not be required to operate in accordance with the Public Financial Management Act and the State Interest Governance Authority Act.
– 22nd July 2020 – Attorney General writes to Finance Minister expressing concern the Agyapa (formerly Asaase) Minerals Royalties Investment Agreement is skewed against interest of Ghana, unconscionable and will allow for a breach of Ghana’s Banking Act.
– 3rd August – Parliament approves amendment to Minerals Income Investment Fund (MIIF) Act.
– 10th August 2020 – Name of Asaase Royalties Limited is changed to Agyapa Royalties Limited.
– 12th August 2020 – Attorney General writes to Finance Minister after series of meetings and letter exchanges, okaying the agreement subject to 7 outstanding amendments.
– 13th August 2020 – Government lays Agyapa Minerals Royalties Investment Agreement and 4 related documents in parliament for approval; Speaker refers documents to Finance Committee
– 14th August 2020 – Minority MPs led by Cassiel Ato Forson address media briefing in parliament to demand withdrawal of agreement claiming it will give private individuals 49% ownership of the country’s mineral royalties which will be against the interest of the state.
– 14th August 2020 – Finance Committee of Parliament submits report to the floor recommending approval of Agyapa agreement.
– 14th August 2020 – Parliament approves Agyapa agreement after Minority MPs walked out.
– 25th August 2020 – 15 Civil Society Organisations (CSOs) address media briefing demanding suspension of Agyapa agreement
– 28th August 2020 – Finance Minister Ken Ofori Atta addresses media briefing at which he defends Agyapa agreement and announces listing on London and Ghana Stock Exchanges will happen in December 2020
– 2nd September 2020 – Finance Minister meets CSOs over Agyapa agreement as part of further consultations
