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 Thomas Partey Case: Presumption of innocence, sovereignty and the World Cup
27 minutes -
Konongo crash leaves multiple injured
47 minutes -
Book Launch: Political Economy of Institutionalising Monitoring & Evaluation Practice in Africa
58 minutes -
Residents protest destruction of sacred Dodowa Forest for interim market Â
59 minutes -
New York Knicks win NBA championship for first time in over 50 years
1 hour -
Panic as body of 67-year-old woman is stolen from Adevukope cemetery
1 hour -
Unidentified road crash victim at 37 Military Hospital yet to be claimed
2 hours -
High Court orders Greater Accra Regional Minister to be served for alleged contempt
2 hours -
Court did not encourage reconciliation in Nyinahin SHS assault case — Judicial Service
2 hours -
Refuse crisis deepens as over 500 Aboboyaa riders queue for hours
3 hours -
McGinn the hero as Scotland clinch memorable victory
4 hours -
Iran win four staff visa appeals but 11 banned
4 hours -
Norway braces for verdict in rape trial of crown princess’s son Høiby
5 hours -
Suspected armed robber dies from gunshot wound after snatching a taxi at La
6 hours -
Over 458,000 children miss school due to child labour in Ghana — CHRAJ
6 hours