Business News of Tuesday, 6 October 2020
Source: www.ghanaweb.live
2020-10-06Agyapa deal: Focus on the valuation not corruption angle - Franklin Cudjoe to Special Prosecutor
IMANI Ghana President, Franklin Cudjoe
President of IMANI Ghana, Franklin Cudjoe has suggested that the Special Prosecutor, Martin Amidu be more focused on the assessment of the controversial Agyapa royalties deal, instead of looking solely at the corruption aspect.
According to him, Civil Society Organisations (CSOs) have, on several occasions, proven the real value of the royalties, pegging it between $2.5
Read full article.billion to $3.5 billion.
Taking to his Facebook page to make his submission on the topic, Franklin Cudjoe said “I sincerely hope the Special Prosecutor is focused on the valuation of AGYAPA royalties. That is the most important issue, not the 'corruption' angle he seems to be interested in because frankly, he could simply pass the deal should documents he claims he hasn't had, be handed to him. He must speak to the technical matter of valuation. CSOs have demonstrated enormous technical competence to show that the real value of the royalties for the assets under consideration is between $2.5bn to $3.5bn not the proposed and contracted $1bn by the finance ministry. I am watching the SP paaaa...He can reach out”.
His comments come after the Finance Ministry announced on Monday, October 5, 2020, the suspension of the launch of the Initial Public Offering (IPO) of the Agyapa Royalties deal.
In a letter signed by the Deputy Finance Minister, Charles Adu-Boahen and addressed to the Office of the Special Prosecutor, it noted that the decision was resultant of a pending completion of a corruption risk assessment by the Office of the Special Prosecutor.
“The Ministry does not intend to proceed with the IPO ahead of the results of the corruption risk assessment by your office. The international investor community has been closely monitoring the outcome of the current state of the transaction, and, it would, therefore, be detrimental to proceed without receiving the necessary approvals and green light from your office,” the letter read.
Prior to approving the Agyapa Royalties transaction, Parliament in 2018 passed the Minerals Income Investment Fund (MIIF) Act 2018 which establishes the Fund to manage the equity interests of Ghana in mining companies and receive royalties on behalf of government.
The purpose of the fund is to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country and government through the MIIF.
Agyapa Royalties Limited, in return, aims to raise between US$500 million and US$750 million for the Government on the Ghana and London Stock exchange’s intended for development and infrastructure projects.
Read below his Facebook post.
