General Politics

Agyapa deal: SP’s corruption risk findings will be factored into IPO – Gov’t

The Finance Ministry has expressed its commitment to cooperate with the Special Prosecutor with regards to the Agyapa Mineral Royalties transaction.

According to the Ministry, an Initial Public Offer (IPO) which was put on hold, will stay suspended pending the completion of the corruption risk assessment being undertaken by the Office of the Special Prosecutor.

“In the interim, the OSP has been notified by MoF that the IPO shall not be launched until the risk assessment has been completed.”

Government entered into an agreement with Agyapa Mineral Royalties Investment Limited to monetise the country’s mineral royalties to facilitate the development of key sectors of the economy.

The move has been criticised by many civil society organisations as opaque with the opposition National Democratic Congress (NDC) citing an attempt to siphon public funds as the motive.

Government, earlier this month, suspended the intended launch of an IPO of the Agyapa Mineral Royalties Limited after a call by the OSP on September 14, to produce relevant documents concerning the development to aid its probe.

The Special Prosecutor had, prior to this launch date, indicated that information it had been furnished with was inadequate.

Commending the OSP’s interest in the matter, the Finance Ministry in a press release indicated its readiness to incorporate the findings of the assessment in the processes involved in the launch of the IPO.

“Any such exercise and the findings thereof, by the Office of the Special Prosecutor of Ghana shall be deemed material to the IPO and public listing of Agyapa..” the Ministry said.

The firm is expected to list on the London and Ghana Stock Exchanges and raise at least $500 million for government to invest in infrastructure, health and education.

A statement issued by the Public Relations Unit of the Ministry on October 9, further said the outcome of the probe “will therefore need to be fully disclosed in the prospectus prior to applying to the regulators of the UK and Ghana Stock Exchanges for approval to launch the IPO.”

It also indicated that the compliabnce with the OSP’s duties is a clear assurance to “all Ghanaians that the transaction has and will continue to adhere to the highest levels of corporate governance and transparency.” 

Under the agreement, Agyapa Mineral Royalties Limited has been incorporated in Jersey near UK to receive and manage royalties from 16 gold mining leases over the next 15 years or so.

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