President John Dramani Mahama’s recent dismissal of Edward Nana Yaw Koranteng, the Chief Executive Officer (CEO) of the Minerals Income and Investment Fund (MIIF), signals a significant shift in Ghana’s approach to managing its mineral wealth, particularly concerning the controversial Agyapa royalties deal. Koranteng’s removal, effective January 13, 2025, follows his February 2023 testimony before the Public Accounts Committee (PAC), where he revealed over $12 million in expenditures on preparatory processes for the Agyapa deal, a transaction met with widespread public resistance and ultimately suspended in 2021. The President’s decisive action underscores a commitment to transparency and accountability in the management of the nation’s mineral resources and sets the stage for a thorough examination of the Agyapa deal’s complex and contentious history.
The Agyapa deal, conceived during the previous administration of President Nana Akufo-Addo, aimed to leverage Ghana’s gold royalties for infrastructural development by listing a special purpose vehicle, Agyapa Royalties Limited, on the London Stock Exchange. However, the deal was mired in controversy from its inception, facing intense scrutiny over issues of transparency, governance, and potential conflicts of interest. Key figures within the Akufo-Addo administration, including Gabby Asare Otchere-Darko, whose law firm Africa Legal Associates (ALA) was involved, and then-Finance Minister Ken Ofori-Atta, whose company Databank served as a financial advisor, played prominent roles in the deal’s structuring, raising concerns about potential undue influence and lack of arm’s-length transactions. These concerns, coupled with the significant financial commitments made by MIIF under Koranteng’s leadership to various mining and other companies, have fueled speculation about the fund’s management and necessitate a comprehensive investigation.
President Mahama’s decision to replace Koranteng with Justina Nelson as Acting CEO of MIIF further reinforces the commitment to a new era of transparency and accountability. Nelson, a seasoned financial professional with extensive experience in both private and public sectors, particularly within the mining and energy industries, brings a wealth of expertise to the role. Her appointment, effective January 14, 2025, underscores the President’s focus on ensuring competent and ethical leadership at the helm of MIIF, particularly during this period of heightened scrutiny. Nelson’s strong academic credentials, including a Master of Laws in Corporate and Commercial Law and an MBA in Marketing, further equip her to navigate the complex financial and legal landscape surrounding the management of Ghana’s mineral royalties.
The revocation of Koranteng’s appointment and the subsequent appointment of Nelson signify the commencement of a broader effort to restore public trust and thoroughly investigate the Agyapa deal’s legacy. The President’s actions are in line with Article 195 (1) of the Constitution and Section 21 (2) of the Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978), demonstrating a commitment to adhering to the legal and constitutional framework governing the management of Ghana’s mineral wealth. The incoming administration appears poised to conduct a comprehensive review of the Agyapa deal’s financial transactions and assess the potential implications for the country’s economic interests.
Koranteng, during his PAC testimony, defended the Agyapa deal, asserting that the Ministry of Finance had engaged reputable international consultants and financial advisors to ensure due diligence. He maintained that the deal’s objective was to establish a gold royalties company that would benefit Ghana through the streaming of royalties. However, these assurances failed to quell public concerns and criticisms leveled by civil society groups and the opposition National Democratic Congress (NDC), who questioned the deal’s transparency and potential for conflicts of interest. The Mahama administration’s actions suggest a determination to address these concerns and ensure a more transparent and accountable approach to managing the nation’s mineral resources.
The appointment of Justina Nelson and the dismissal of Edward Nana Yaw Koranteng mark a crucial juncture in the ongoing saga of the Agyapa royalties deal. These decisive actions by President Mahama signal a clear intent to prioritize transparency, accountability, and good governance in the management of Ghana’s mineral wealth. The forthcoming investigation into the Agyapa deal is expected to shed light on the complexities of the transaction and inform future policy decisions regarding the utilization of Ghana’s valuable mineral resources for national development. The emphasis on adherence to legal and constitutional frameworks, coupled with the appointment of a highly qualified and experienced professional to lead MIIF, indicates a renewed focus on ensuring that Ghana’s mineral wealth benefits the nation and its citizens in a transparent and sustainable manner.
