Accra: Ghana's Extractive Sector Multi-Stakeholder Group (MSG) has called on Parliament to address the delays in disbursing mineral royalties to mining host communities. These delays have been identified as significant barriers to local development projects, disrupting planning efforts and undermining the objectives set forth in the Minerals Development Fund Act.
According to Ghana News Agency, Dr. Emmanuel Steve Asare Manteaw, a member of the MSG, raised these concerns during a media engagement aimed at disseminating the findings of the 2023 Ghana Extractive Industries Transparency Initiative (GHEITI) Report in Accra. He attributed the ongoing delays to weak oversight, emphasizing the need for Parliament to ensure compliance with the Minerals Development Fund Act, 2016 (Act 912), by holding State institutions accountable for the timely release of approved funds.
Dr. Manteaw highlighted that development projects in beneficiary communities have been halted due to the uncertainty surrounding disbursement timings. This situation makes it challenging for communities to plan their development activities with confidence. He also pointed out the critical role of Parliament, which had passed the law mandating that certain percentages of mineral royalties be disbursed to mining host communities.
In addition to urging Parliament to ensure timely disbursements, Dr. Manteaw called for greater transparency. He suggested that information on delayed payments, including the responsible institutions and outstanding amounts, should be made public.
Mr. Patrick Nomo, Co-Chair of the GHEITI Multi-Stakeholder Group and Chief Director at the Ministry of Finance, noted that reforms in the mineral royalty regime had improved the management of extractive revenues. He credited GHEITI advocacy for contributing to these reforms, which included changes to the mineral royalty regime and institutionalizing subnational royalty transfers through the Minerals Development Fund, aimed at enabling mining communities to benefit more directly from mineral resources.
Despite these reforms, Mr. Nomo acknowledged ongoing challenges, such as revenue leakages and weak inter-institutional coordination, which continue to limit the sector's contribution to both national and local development. He called for stronger institutional collaboration and improved data management to enhance transparency and ensure that resource revenues result in tangible benefits for mining communities.
Mr. Nomo reaffirmed the Government's commitment to utilizing evidence generated through GHEITI to inform policy reforms and strengthen accountability within the extractive sector. Under the Minerals Development Fund Act, mineral royalties are distributed through a statutory formula, with district assemblies receiving 55 percent of the allocation, mining-affected communities 25 percent, and traditional councils 20 percent.