The Finance Minister-designate has disclosed that the main reason why Databank pulled out of the Agyapa royalties deal was as a result of controversies that were circulating through the media.

According to Ken Ofori-Atta, he was taken aback when the investment bank [Databank] issued a letter expressing its withdrawal from the deal.

He said the media controversies which he termed as ‘noises’, did not help Databank thrive as a corporate entity.

“And I believe that they thought if their presence was going to be inimical to the realisation of this vision which they believe in, then it’s better to step out to avoid that noise.”

Taking his turn for the vetting of nominees by President Akufo-Addo, he told Parliament’s Appointments Committee on Friday that as a nation, the effect of such deals on companies should be stated clearly for companies competent enough to take Ghana to the capital market.

“I’m sure you [Mubarak Mohammed Muntaka] have Databank’s letter and, therefore, reasons ascribed to that are clear. And I think one of those was that they were not going to be standing in the way of a deal that they thought was good for the republic.

“And if their exit would enable the transaction to go on, then they’d rather do that,” Ken Ofori-Atta said.

Databank withdraws from deal as transaction advisor

Investment and brokerage firm, Databank served notice to Imara Holding Limited of their decision to withdraw their services as a partner and transaction advisor in the controversial Agyapa royalties deal.

According to the Group CEO of Databank, Kojo Addae-Mensah, in a letter to Imara Holding Limited, he stated that their decision to withdraw follows several attacks on their reputation by political actors as a result of the Finance Minister’s association with the investment firm.

Brouhaha of the Agyapa

The Agyapa Royalties deal generated so much interest from several quarters because of the alleged controversies of conflict of interest, amongst others.

Some 15 Civil Society Organizations (CSOs) under the umbrella name Alliance of CSOs working on Extractive, Anti-Corruption and Good Governance also demanded the immediate suspension of the implementation of the controversial Special Purpose Vehicle, Agyapa Royalties Limited established by government though the Minerals Income Investment Fund.

Former Special Prosecutor, Martin Amidu’s Corruption Risk Assessment on Agyapa deal also raised red flags over the deal, describing the deal as fraught with corruption.