By Elsie Appiah-Osei, GNA
Accra, July 31, GNA—The New Patriotic Party (NPP) Minority Caucus in Parliament has criticised the government for allegedly failing to renegotiate the state’s equity stake in the Damang Mine from 10 per cent to at least 30 per cent.
The Caucus says such a move would have secured greater value and increased revenue for the country.
According to the Caucus, Parliament should have thoroughly examined the full terms of the transaction and all relevant material information before approving the agreement.
Addressing journalists in Parliament House, Accra, on Friday, Mr Kwaku Ampratwum-Sarpong, the Ranking Member on the Lands and Natural Resources Committee of Parliament, said the involvement of the President’s brother in the transaction should have prompted the government to push for a more favorable deal for the state, rather than simply approving a transfer of ownership.
He stressed that Damang was a strategic national asset whose transfer warranted heightened parliamentary scrutiny.
He said, “Damang is not an ordinary mine. It is one of Ghana’s important mining assets, and its transfer has attracted significant national interest.”
Mr Ampratwum-Sarpong, also the NPP Member of Parliament (MP) for Mampong, noted that the successor operator, Damang Gold Mine, was a special purpose vehicle (SPV) of Engineers and Planners Limited, a company funded by the President’s brother.
He, however, clarified that the relationship alone did not amount to wrongdoing or disqualify the company from operating in Ghana’s mining sector.
“That fact by itself does not establish any impropriety, nor does it disqualify the company from participating in Ghana’s mining industry.”
He argued, however, that the connection heightened public interest in the transaction and imposed a greater responsibility on Parliament to ensure the deal was subjected to rigorous scrutiny.
“It undeniably heightens the public interest in the transaction and places an even greater responsibility on Parliament to ensure that every aspect of the award is subjected to rigorous, transparent, and independent scrutiny.”
The Ranking Member maintained that Parliament should have insisted on reviewing all material information relating to the agreement before granting its approval.
He further argued that the transaction presented a rare opportunity for the state to improve its economic interest in the mine.
“Rather than merely approving a transfer of ownership, the government should have pursued an increase in the state equity participation from the current 10 per cent to maybe between 20 and 30 per cent, thereby securing greater long-term value and revenue for the Ghanaian people from an already producing mining concession,” he said.
Mr Ampratwum-Sarpong said such a renegotiation during the transition would have ensured that Ghana derived greater long-term benefits from one of its key producing mining assets.
GNA
Reporter: Elsie Appiah-Osei, GNA
Email: [email protected]