Bright Simmons, Vice President, IMANI Africa
According to documents obtained by Ghanaweb, the failure of the Agyapa Agreement cost the government US$12 million in losses and left it with an outstanding debt of US$2 million.
Mineral Income Investment Fund (MIIF) Chief Executive Officer Edward Nana Yaw Koranteng recently revealed the US$12 million figure to Parliament’s Public Accounts Committee.
IMANI Africa Vice President Bright Simmons shared a breakdown on X (formerly Twitter) of how various amounts were paid to 10 local and international organizations.
When asked from the tweet whether the US$2 million outstanding debt meant that the overall expenditure would reach US$14 million, he answered in the affirmative. However, he revealed that this figure could increase by now as the total amount is due to be paid out before the suspension in 2021.
“The $2 million has not yet been paid. However, please note that the deal is stalled. If you proceed, you will also have to pay underwriting fees and many other fees, but the amount It’s even more expensive. There’s also interest. And there’s also compliance fees, which are not disclosed here,” he pointed out.
See his tweet below.
yes. The $2 million has not yet been paid. However, please note that the deal is pending. If you proceed, you will also have to pay underwriting fees and many other fees, which will be even more expensive. I’m also interested. It also includes compliance costs, which are not disclosed here.
— Bright Simmons (@BBSimons) February 23, 2024
Meanwhile, Parliament’s Mines and Energy Committee formally requested details of the spending.
The largest payment of US$12 million was to Imara Holdings, the deal’s transaction advisor, which raised more than US$9.6 million.
Some law firms and audit firms are paid varying amounts, with an additional US$1.5 million or more being paid in staff salaries. The Ghana Stock Exchange was also paid an amount based on the list seen by Ghanaweb.
Agyapa’s contract was primarily to generate funds for critical infrastructure projects through mineral royalties.
It was canceled by President Nana Akufo-Addo in 2021 after civil society groups and the main opposition party, the National Democratic Congress (NDC), expressed concerns.
Sara
Click here to follow GhanaWeb General News WhatsApp Channel
In the meantime, watch the latest episode of The Lowdown GhanaWeb TV below.