Agyapa spending: US$2m outstanding debt could be higher

Agyapa spending: US$2m outstanding debt could be higher - Bright Simons explains

Bright Simons, Vice President IMANI Africa

The botched Agyapa deal cost the government US$12 million with an outstanding debt of US$2m, according to documents sighted by GhanaWeb.

The Chief Executive Officer of the Minerals Income Investment Fund (MIIF), Edward Nana Yaw Koranteng, recently disclosed the US$12m figure to Parliament's Public Accounts Committee.

IMANI Africa Vice President Bright Simons published on X (formerly Twitter) a breakdown of how ten local and international entities were paid varying sums that came up to the amount.

Asked by a tweep if the outstanding debt of US$2m meant the entire expenditure came up to US$14m, he answered in the affirmative. However, he clarified that the figure could rise by now since the sum was due before the suspension in 2021.

"The $2m is yet to be paid. Note however that the transaction is in limbo. If they proceed they will also have to pay underwriting and a host of other fees,which will be larger. Then there is interest. And any compliance fees not disclosed here," he pointed out.

Watch his tweet below:

Yes. The $2m is yet to be paid. Note however that the transaction is in limbo. If they proceed they will also have to pay underwriting and a host of other fees,which will be larger. Then there is interest. And any compliance fees not disclosed here.
— Bright Simons (@BBSimons) February 23, 2024

Meanwhile, the Mines and Energy Committee of Parliament has formally requested to be furnished with expenditure details.

The biggest payment out of the US$12m was to Imara Holdings, the transaction advisor on the deal, who bagged over US$9.6 million.

Some legal and audit firms were also paid varying sums, plus over US$1.5m paid as staff salaries. The Ghana Stock Exchange was also paid an amount according to the list sighted by GhanaWeb.

The Agyapa deal was primarily to generate funds for crucial infrastructure projects through mineral royalties.

It was halted by President Nana Akufo-Addo in 2021 following concerns raised by civil society groups and the main opposition National Democratic Congress (NDC).