Agyapa: There was no conflict of interest on my part, says Ofori-Atta

Ken Ofori-Atta, the Finance Minister-designate, says there was no conflict of interest stemming from Databank’s involvement in the Agyapa Royalties deal.

Responding to a question from James Algaga, the MP for Builsa North and member of Parliament’s appointments committee, Ofori-Atta said, “I don’t think there was any conflict of interest … because I was not part of the decision.”

He added: “I think the first-class nature of that institution speaks to itself. I think a Ghanaian entrepreneur ingenuity has brought it this far. It must be praised and we should be encouraging our companies to grow so that we can begin to do the Eurobonds ourselves.”

In February this year Databank withdrew from the controversial Agyapa Royalties deal.

The investment firm was at the centre of the controversy after its involvement in the transaction.

Smear professional reputation

Databank said the decision to withdraw from the Agyapa deal was based on attempts by certain individuals to tarnish its reputation.

A letter signed by the financial services company’s chief executive officer, Kojo Addae-Mensah, said: “The board of directors of Databank has observed with deep concern persistent attempts by some political actors, during the political season leading up to the general elections of December 2020, to tarnish our hard-won reputation painstakingly built over the last 30 years, by unfairly exploiting our participation and involvement in the transaction as one of the transaction advisors.

“We believe this is principally due to the Minister for Finance’s association with Databank as its co-founder.”

It added, “The board of Databank, whilst being convinced about the immeasurable benefits to be reaped by the Republic of Ghana from the transaction, is of the view that the tumult generated by the involvement of Databank in the transaction, coupled with insinuations and aspersions cast on the reputation of the company in the lead-up to the election, not only grossly compromises the ability to execute such a market-sensitive and novel transaction, but also has a real tendency to severely damage the invaluable business reputation of Databank.”

The deal was put on hold by the government last year after fierce resistance by civil society groups. They argue that it lacks transparency and is not in Ghana’s interest.

About the Agyapa deal

The income investment agreement between the Government of Ghana and the Minerals Income Investment Fund, Agyapa Royalties Ltd and ARG Royalties Ltd centres around transactions to monetise gold royalties, entered into under the Minerals Income Investment Fund Act 2018 (Act 978).

The aim is for the arrangement, once executed, to make immediately available to Ghana US$500 million, with another $500 million to follow.

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