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Parliament approves request to securitize royalties from gold mining

Parliament has approved five agreements to securitize gold royalties of the country through a Special Purpose Vehicle (SPV), Agyapa Royalties Limited, pending the assent of the Minerals Income And Investment Fund Amendment Bill by the President.

This is despite the boycott of proceedings by the Minority which argued on the Floor that the agreements amounted to mortgaging the proceeds from the mineral wealth of the country.

The agreement is in relation to a gold royalties monetization transaction where the government seeks to raise revenue for development on the back of royalties from the mining sector to the tune of US$1 billion.

The Member of Parliament (MP) for Yapei Kusawgu, John Jinapor, expressing the Minority’s position on the matter described the government’s decision as unfortunate.

“What they are doing is to mortgage 75.6% of our mineral revenue going forward forever for this so-called Agyapa Company. Mr. Speaker, the question is if President Akufo-Addo, Ghana was your company and you were the board chairman, would you bring this document for us to approve? You get US$200 million per annum and you insist that you want to take US$500 million and seize US$140 million per annum to a so-called SPV.”

Source: CNR

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