Accra: The New Patriotic Party (NPP) Minority Caucus in Parliament has criticized the government for allegedly failing to renegotiate the state's equity stake in the Damang Mine from 10 percent to at least 30 percent. The Caucus argues that such a move would have secured greater value and increased revenue for the country.
According to Ghana News Agency, the Caucus insists that Parliament should have thoroughly examined the full terms of the transaction and all relevant material information before approving the agreement. Addressing journalists in Parliament House, Accra, Mr. Kwaku Ampratwum-Sarpong, the Ranking Member on the Lands and Natural Resources Committee of Parliament, emphasized the strategic importance of Damang as a national asset, warranting heightened parliamentary scrutiny.
Mr. Ampratwum-Sarpong highlighted that the involvement of the President's brother in the transaction should have prompted the government to push for a more favorable deal for the state, rather than simply approving a transfer of ownership. He noted that the successor operator, Damang Gold Mine, was a special purpose vehicle (SPV) of Engineers and Planners Limited, a company funded by the President's brother. He clarified that this relationship alone did not amount to wrongdoing or disqualify the company from operating in Ghana's mining sector.
He argued that the connection heightened public interest in the transaction and imposed a greater responsibility on Parliament to ensure the deal was subjected to rigorous scrutiny. Mr. Ampratwum-Sarpong maintained that Parliament should have insisted on reviewing all material information relating to the agreement before granting its approval.
The Ranking Member further stated that the transaction presented a rare opportunity for the state to improve its economic interest in the mine. He argued that rather than merely approving a transfer of ownership, the government should have pursued an increase in the state equity participation from the current 10 percent to maybe between 20 and 30 percent, thereby securing greater long-term value and revenue for the Ghanaian people from an already producing mining concession.
Mr. Ampratwum-Sarpong concluded that such a renegotiation during the transition would have ensured that Ghana derived greater long-term benefits from one of its key producing mining assets.