The Minority Caucus in Ghana’s Parliament has issued a stark warning regarding a brewing controversy surrounding the Black Volta gold mine concession in the Upper West Region. The dispute, involving Australian-Ghanaian joint venture Azumah Resources and Ghanaian mining services firm Engineers & Planners (E&P), has been flagged as a significant test of Ghana’s mining governance framework and its commitment to transparency and due process. The Minority alleges irregularities in the transfer of the concession, potentially jeopardizing Ghana’s reputation as a reliable investment destination for mining operations. Their concerns revolve around the legality of a “no-objection” letter issued by the Minerals Commission, which seemingly allowed E&P to acquire the concession without clear ministerial approval as mandated by law. This action, they argue, raises questions about potential conflicts of interest, regulatory oversight failures, and the erosion of public trust in institutions responsible for managing Ghana’s natural resources.
At the core of the Minority’s argument is the alleged violation of Section 14 of the Minerals and Mining Act, 2006 (Act 703). This section explicitly requires prior written approval from the Minister of Lands and Natural Resources before any transfer of mineral rights can occur. The “no-objection” letter, issued by the Minerals Commission without demonstrable ministerial consent, is therefore deemed legally questionable. The Minority contends that this procedural lapse not only undermines the rule of law but also casts doubt on the integrity of the entire process, potentially discouraging future investment in Ghana’s mining sector. They further emphasize the potential for this situation to create a precedent for circumventing established legal procedures, thereby weakening the overall regulatory framework governing mineral resource management.
Adding another layer of complexity to the situation is the involvement of the ECOWAS Bank for Investment and Development (EBID). The Minority has raised concerns about the Bank’s potential involvement in a credit arrangement with E&P, alleging that EBID may not have conducted sufficient due diligence to ascertain the legality of the concession acquisition. This concern is amplified by Ghana’s current leadership positions within EBID, holding both the chair of the Board of Governors and the Board of Directors. While such leadership roles typically signal positive regional cooperation, the existing controversy surrounding the Black Volta concession casts a shadow on these positions, raising concerns about potential conflicts of interest and the integrity of regional financial institutions.
The Minority Caucus has articulated five key areas of concern stemming from this controversy: legal and regulatory irregularities, policy coherence, reputational risk, economic consequences, and political accountability. They argue that the alleged disregard for established legal procedures in the transfer of the concession creates regulatory uncertainty and potentially erodes investor confidence. This, in turn, could negatively impact economic development in the Upper West Region, particularly given the strategic importance of the Black Volta gold mine. Moreover, the controversy risks damaging Ghana’s international reputation as a stable and transparent mining jurisdiction. Finally, the Minority has pointed to the perceived political influence of E&P, alleging a close relationship between the firm’s founder and the political establishment, further fueling concerns about potential undue influence and lack of impartiality in the handling of the concession transfer.
Central to the Minority’s concerns is the allegation that E&P may be leveraging political connections to gain an unfair advantage in the acquisition of the Black Volta gold mine. This perceived political influence raises questions about the fairness and transparency of the process, potentially undermining public trust in government institutions. The Minority argues that such perceptions, whether true or not, are damaging to Ghana’s reputation and could deter future investment. They stress the importance of upholding the principles of transparency and accountability in the management of natural resources to ensure equitable benefits for all Ghanaians and to maintain the country’s credibility in the international community.
To address these concerns, the Minority Caucus is demanding a comprehensive briefing from the Minister for Lands and Natural Resources. They have also presented six specific questions to the Minister, seeking clarification on key aspects of the concession transfer, including the timing of ministerial approval, the legitimate ownership of the contested site, and the safeguards in place to prevent state agencies from issuing potentially misleading documents to international stakeholders. The Minority has made it clear that if the Minister’s responses fail to adequately address their concerns, they will pursue a formal parliamentary inquiry under Article 103 of the Constitution. This firm stance underscores the seriousness of the allegations and the Minority’s commitment to ensuring transparency and accountability in the management of Ghana’s valuable mineral resources. They emphasize that the credibility of Ghana’s mining governance regime is at stake and that Parliament has a duty to uphold the rule of law and protect the nation’s interests.
