The Herald reports that it has obtained additional documents from the British tax haven of Jersey regarding the controversial Agyapa Royalties deal.
This deal resurfaced at the Public Accounts Committee (PAC) of Parliament, revealing a potential financial loss to Ghana of up to US$12 million.
However, this US$12 million might just be the beginning, as the Auditor-General has reportedly not included the Agyapa Royalties deal in his report, even though three years have passed since its collapse.
According to the documents obtained by The Herald, Agyapa Royalties was registered as a private company under Jersey’s Companies (Jersey) Law 1991, limited by share, with an unrestricted corporate capacity. Interestingly, the Mineral Income Investment Fund (MIIF) is linked to Agyapa, with its address listed as the Ministry of Finance, Finance Drive, Accra, Ghana.
Africa Legal Associates, a law firm owned by Gabby Asare Otchere-Darko, played a significant role in the controversial Agyapa Royalties deal, including the selection of the name Asaase Royalties, which was later changed to Agyapa Royalties.
The Herald says the documents it has obtained also list the names of Ghanaians involved, such as Yaw Baah, Felicia Ashley, and George Mireku Duker, the Member of Parliament (MP) for Tarkwa-Nsuaem. Foreign individuals like Tom Williamson, Donna Laverty, and James Bore are also mentioned for their various roles in attempting to collateralize Ghana’s minerals using Agyapa Royalties.
The deal sparked controversies over conflicts of interest and concerns about Ghana getting value for money. The Akufo-Addo government faced criticism for not disclosing the names of directors and their nationalities. For example, the company, registered in a tax haven, was to be managed by Kofi Bosompem Osafo-Maafo, the son of ex-Senior Minister Yaw Osafo Marfo and a Deputy Director-General at the Social Security and National Insurance Trust (SSNIT) in charge of Investment & Development.
The Akufo-Addo government engaged the services of Britain-based White & Case LLP International Law Firm, which included Bentsi-Enchill, Letsa & Ankomah, and Africa Legal Associates owned by Gabby Asare Otchere-Darko, a cousin of the President, Nana Akufo-Addo.
The Akufo-Addo government engaged the services of the Britain-based White & Case LLP International Law Firm, which included Bentsi-Enchill, Letsa & Ankomah, and Africa Legal Associates, owned by Gabby Asare Otchere-Darko, a cousin of the President, Nana Akufo-Addo.
In a surprising turn of events, in February 2021, the then Finance Minister-designate, Ken Ofori-Atta’s investment and brokerage firm, Databank, withdrew as a financial advisor in the Agyapa royalties deal. Databank, along with Imara Holding Limited of South Africa, had jointly served as transaction advisors for the monetization of Ghana’s gold royalties through the dual listing of the Agyapa Gold Royalties Company on the Ghana and London Stock Exchanges.
According to documents from Jersey, the idea for Agyapa Royalties was conceived in October 2019, with the Jersey Financial Service Commission assisting in the company’s setup. Originally established as Asaase Royalties Limited, it later changed its name to Agyapa Royalties Limited on August 10, 2020.
Records from the Jersey Company Registry show Agyapa’s registration number as 130211, dating back to November 05, 2019, when it was established as Asaase Royalties Limited. The share capital of Agyapa Royalties is divided into 500,000,000 ordinary shares of USD 0.01 each. On August 10, 2020, another certificate of incorporation surfaced, changing the company’s name, while maintaining its registered number as 130211, according to the Registrar of Companies in Jersey Channel Island.
The Registrar of Companies in Jersey Channel Island certified this change, stating, “I hereby certify that Asaase Royalties Limited…having changed its name by special resolution, has today been entered on the Register of Companies incorporated in Jersey as a private company having the name of Agyapa Royalties Limited. Dated this 10 August 202”.
Ghanaians involved in the Agyapa Royalties deal, as listed in the documents, include Yaw Baah, Felicia Ashley, and George Mireku Duker. An anomaly arises as George Mireku Duker’s role as the Deputy Minister of Lands and Natural Resources Ministry was not identified in the documents. He rather mentioned his role as the MP for Tarkwa-Nsuaem, with an address at Parliament House.
Tom Williamson was captured as secretary to the company in another document dated January 2, 2020, while one other document had names such as Donna Laverty and James Bore, identified as authorized signatories.
Last week, the CEO of MIIF, Edward Nana Yaw Koranteng, disclosed to the Public Accounts Committee (PAC) of Parliament that the Akufo-Addo government spent US$12 million on the failed Agyapa royalties deal.
The Agyapa Royalties deal, which aimed to generate funds for crucial infrastructure projects through mineral royalties, was halted by President Nana Akufo-Addo in 2021, following concerns raised by civil society groups, experts, and some members of the opposition National Democratic Congress (NDC).
Before its cancellation, US$12 million had already been utilized for its initial public offering on the London Stock Exchange (LSE).
During the session on Tuesday, February 13, 2024, Mr. Koranteng informed PAC that the Ministry of Finance had subscribed to the deal based on advice from international consultants.
“My understanding, honourable chair, is that the Ministry of Finance procured the services of international consultancy and companies and financial institutions that have done this in the past and that the advice provided was what the Ministry of Finance stood on.”
“We started with the Ministry of Finance and from the documents that we have, it is clear that the correct advice was provided on the set-up of a gold royalties company where the streaming of the royalties would benefit Ghana,” he added.
A member of the Public Accounts Committee (PAC) and MP for Buem, Kofi Adams, has spoken out on the government’s $12 million expenditure on the suspended Agyapa royalties deal, stating that the committee was unaware of this expenditure.
The Akufo-Addo government had proposed the deal, claiming it would raise funds through mineral royalties for key infrastructure projects. However, the deal was eventually suspended after opposition from civil society organizations and key individuals, including lawyers and mineral experts such as Fui Tsikata and Kofi Ansah.
Mr. Adams, in an interview on Eyewitness News on Citi FM, stated that the committee was not informed about the expenditure, and the revelation was brought to light through a public interest question posed to the CEO of the MIIF.
He also mentioned that the Auditor General’s report had not captured this expenditure, highlighting a potential oversight in the reporting process.
“This is the very first time that we all are being provided with this information that the country actually wasted $12 million of its money at the time we have been told that the country was faced with a number of challenges in chasing after a ghost. And that the president and all those who considered this whole deal never informed all of us that $12 million of our money had already been funded into a project that didn’t have the permission of appropriate bodies,” he stated.
He further said “According to the CEO of MIIF, the Ministry of Finance gave them the go-ahead to go into such an investment and that in taking a decision to stop, they were not involved. And that he could not even provide us with the reasons why the decision to stop was taken. And according to him, the letter to stop was sent to the Attorney General, who looked at it and advised. They as MIIF were not involved in any way in terms of stoppage. And truly speaking this was the first time. And this was not even in the Auditor General’s report but this was out of a public interest question…A member wanted to know about the Agyapa deal and the recent investment in the lithium found in the central region.”