It has emerged that the current Special Prosecutor Martin Amidu advised against the establishment of a company by the National Democratic Congress in 2011 to manage royalties from mineral resources in Ghana on behalf of government.
While serving then as Attorney General, Mr. Amidu kicked against the move if it did not have a bipartisan consensus.
Following the objection of the National Democratic Congress and its flagbearer John Dramani Mahama to a decision by government to establish a Special Purpose Vehicle called Agyapa Royalties Agreement to manage funds from mineral resources, it has been revealed that a similar initiative was attempted by the then John Evans Atta Mills administration for same purpose.
Reports say a budget statement delivered to Parliament on November 18, 2010 by then finance minister Dr. Kwabena Duffuor disclosed government’s intention to establish a national vehicle called the Ghana Gold Company with the expected mandate of collecting and managing royalties from mining companies.
“Beginning in fiscal year 2011 therefore, Government will commence discussions on the establishment of a national vehicle, the “Ghana Gold Company (GGC)”, which will hold the country’s gold royalties and equity interest,” a memo to the Finance and Mines committees of Parliament from the Finance Ministry said.
It has also emerged that the Attorney General at the time, Mr. Martin Amidu raised concerns about the arrangement and called for a bipartisan approach to safeguard the future of the establishment.
Speaking in an interview on Metro TV’s Good Evening Ghana monitored by dreamzfmonline.com, private legal practitioner and former Executive Director of the Danquah Institute Gabby Asare Otchere Darko disclosed that the current NPP administration is setting up a fund while NDC government at the time wanted to setup a company but Mr. Martin Amidu who was the AG advised against it.
“Parliament in my understanding may establish a public fund for specific purposes such as managing revenue and monies into which such royalties may be paid. But no monies can be withdrawn from such specific public funds without authorization by or under the Authority of an Act of Parliament,” Gabby read from Martin Amidu’s advice to government.
The AG’s opinion further stated that “it may therefore be prudent that the setting up of any special fund by parliament for the republic’s gold interest is subjected to some bipartisan consensus if such a scheme is to stand the test of time. Consequently, it is suggested that the national vehicle to hold and manage the country’s extractive resource interest should be established by an Act of Parliament with powers and relationships akin to those between the minerals commission and the minister for mines. A limited liability company established under the companies code will be consistent of the letter and spirit of the constitution which provides elaborate framework and checks”.
Gabby Asare Otchere Darko who is currently serving as a transaction advisor on the Agyapa Royalties Agreement argued that the current minority in parliament did not object to Act 978 which was passed into law by parliament in 2018. The Act which established the Minerals Income Investment Fund was recently amended, giving birth to Agyapa Royalties Agreement, a move the minority opposed and staged a walk out.
He stressed that the concerns raised by Martin Amidu in his legal opinion on the initiative under the Mills-Mahama administration, have been adequately considered and factored into the current agreement.
