NDC flag bearer of the NDC John Mahama has schooled President Akufo Addo over the Facebook post that described some elements of his Government as "Akyem Sakawa Boys", saying the 75 year old is just displaying his frustration.

President Akufo Addo on Friday lamented over the "Sakawa" tag which was authored by the MP for Bolga Central Isaac Adongo, and got shared by former president Mahama on his wall.

The Bolgatanga Central MP, in a statement relating to the controversial Agyapa Roylaties deal, accused the President and his kith of forming a families-and-friends cartel to capture the mineral resources of the state via the deal.

At a meeting with the Ghana Catholic Bishops’ Conference at the Jubilee House on Friday, 4th August 2020, President Akufo-Addo not only said he was “very disturbed” by the ethnocentric tagging his ethnic group, but also said “that is the kind of language we don’t want in our politics.”

He blamed the NDC flag bearer of igniting an ethnocentric comment, urging Ghanaians to condemn former MP for Bole Bamboo, while he failed to identify the owner of the artice.

But in a rebuttal, the former president explains his post was directed to a specific group of people in the Akufo Addo Government.

"I will be the last person to attack any ethnic group in this country," Maham said.

"I shared a post of Hon Adongo who described certain people in Akufo-Addo's government as 'Akyem Sakawa Boys'.

"My national chairman is an Akyem. The head of our manifesto committee is an Akyem, so how can I make such a general comment.

President Akufo Addo in his meeting on Friday, failed to identify the source of the article and rather blamed his main political opponent for the post that has generated the hashtag #ASB.

"I think Akufo-Addo is just displaying his frustration," Mahama said.

"However the NDC flag bearer of the NDC says the president is just frustrated after his nation capturing agenda was  exposed.

"I can understand President Akufo-Addo Frustration, desperation, and deliberate attempt to wipe up ethnic sentiment in this particular case but I don't think it will wash.He should respond to the debate.
“President Akufo-Addo lost his right to complain a long time ago. He was an opposition leader who called the presidents before him anything you can imagine, including Professor Do Little .

"He is a president who calls his critics naysayers and jeremiahs. On what standard is he angry?”.

The Government has received a widespread condemnation over the Agyapa deal, with NDC saying that the mineral royalties deal lacks transparency.

 

What you need to know about Agyapa Royalties deal and the controversies

Foundations of the deal

The deal started in June 2018 when Parliament passed the Minerals Income Investment Fund (Act 2018) to manage the equity interests in mining companies and also receive royalties on behalf of the Government of Ghana.

The Minerals Income Investment Fund is mandated to manage and invest these royalties and revenue it receives on behalf of Ghana and invest them for higher returns.

To do this, the law enables the Fund to establish Special Purpose Vehicles (SPVs) to appropriate these investments.

Amendment

In July 2020, the government introduced an amendment to the Act to ensure that the SPVs that the Fund would establish to manage investments get unrestricted independence.

On the back of the amendment and the original provisions of the act, the Minerals Income Investment Fund set up an offshore limited liability company known as Agyapa Royalties Limited (previously Asaase Royalties Limited).

The Agyapa Royalties Ltd is incorporated in Bailieick of Jersey in the UK, a tax haven. It has been incorporated in a tax haven to cut out the associated high tax charges to the returns that will accrue to the state from the investments.

Agyapa Royalties Limited is registered in Ghana as an external company.

How Agyapa Royalties will operate

- Agyapa Royalties Limited will trade shares on the Ghana Stock Exchange and the London Stock Exchange for the private market.

- Mineral Income Investment Fund will remain the majority shareholder.

- ARL will raise between $500 million and $750 million for government to use for developmental initiatives – the government has revealed the four key areas of investment will be education expenditure, primary capital, health and infrastructural development.

- Future resources from gold royalties will go to ARL shareholders instead of the Mineral Investment Fund and for that matter government. Essentially, the government is mortgaging expected royalties from gold in exchange for about $500 million – $750 million from ARL.

Concerns and controversy

The Minority MPs have led the opposition to the deal but recently at least 15 CSOs in the extractive sector have joined the call for it to be suspended.

Main concerns

- That creating the SVP as an offshore company in a tax haven will make it difficult to oversight the firm.

- That the agreement makes it impossible for a future government to replace managers of Agyapa Royalties although the Minerals Income Investment Fund will remain the majority shareholder.

- That the whole deal fails the test of transparency because it is based on the hasty amendment to the Minerals Income Investment Fund Act

- That the deal is bad because it seeks to mortgage future revenues from gold royalties for a lump sum money now.

- Fifteen CSOs in the extractive sector, fronting under the name ‘Alliance of CSOs working on Extractives, Anti-Corruption and Good Governance’ want the deal suspended for lack of transparency.

Controversy

The main controversy over the deal is linked with the initial name for the SPV, Asaase Royalties. It has been alleged that some powerful people in current government-owned Asaase Royalties and the name was changed quickly when the cover was blown.

The identities of the top management of Agyapa Royalties, like the son of Senior Minister, Yaw Osafo-Maafo, has also been a source of controversy.