Audio By Carbonatix
Former Deputy Finance Minister has argued that Ghana could have benefited more than it has in the Ayapa Mineral Royalties deal.
Cassiel Ato Forson said the agreement gives the country less than the value of its gold deposit.
“Our main issue is with the valuation. You cannot sell the assets of this country for free. We have been shortchanged, per this current agreement ”.
"In our hearts and mind, we know that Agyapa should not be valued at a billion, It should be a minimum of $2 billion," he said.
The Ajumako-Enyan-Esiam MP stated that there is a need for the Ministry to convince the public that the returns being made are in the interest of the state.
Speaking on the Joy FM's Super Morning Thursday, he said the country could have benefited more from the controversial deal.
The former Deputy Minister cited an analysis made by the Minority in Parliament which is contrary to what was presented by the Finance Minister.
"In the agreement, we have seen that there is perpetuity so there was a need for me to evaluate that. We did our analysis and concluded that is we are issuing it in perpetuity we are looking at $3.7 billion."
"The present value of the cash flow is over $2 billion, however, if you use a discount rate of 3% the present is $3.7 billion," Cassiel explained.
The Former Finance Minister noted that these calculations were made with consideration to the licence duration of the mining fields listed in the agreement.
This comes as the arguments around the Agyapa Mineral Royalties deal increase. A faction of the public believes the deal is the best for attracting investments in the extractive sector.
However, another group maintain that the agreement was hurried and not transparent enough.
The agreement said to be in line with the Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978), was passed without support from the Minority in Parliament.
The agreement will enable the country to use a Special Purpose Vehicle (SPV), Agyapa Royalties Limited, to secure about $1 billion to finance large infrastructural projects.
This is because, Agyapa, operating as an independent private sector entity, will be able to raise funds from the capital market, both locally and internationally, as an alternative to the conventional debt capital market transactions.
Latest Stories
-
The Ghanaian prophet and the mysterious death of his scottish wife Charmain Speirs
45 minutes -
Nearly 400 sentenced in Nigeria for links to militant Islamists
1 hour -
Ghana’s recovery supported by gold strength despite global oil price pressures – Standard Bank Research
1 hour -
‘Excellence is our inheritance’ – Nana Sam Brew-Butler hails Mfantsipim’s 150-year reign in leadership
2 hours -
Kwaku Azar writes: A-G vs OSP
2 hours -
Mfantsipim–Adisadel rivalry built excellence, not division – Sam Jonah
2 hours -
Vice President launches Mfantsipim’s 150 years of shaping Ghana’s greatest mind
2 hours -
I assure Otumfuo, Mahama will join him to commission KNUST Teaching Hospital by end of this year – Haruna Iddrisu
3 hours -
Barcelona dominate derby to extend La Liga lead
3 hours -
Gov’t to roll out free special education for persons with disabilities from July 1 – Education Minister
4 hours -
Importers and Exporters Association declares full support for Publican AI port system
4 hours -
“We used it to test our officiating officials’ readiness” – Bawah Fuseini after CAA Athletics event
4 hours -
Volleyball emerges as Ghana’s fastest rising sport
4 hours -
National Sports Fund needs strong leadership from the top – Administrator David Wuaku
4 hours -
JoySports Exclusive: Steve McLaren in talks with GFA after expressing interest in Black Stars job
4 hours