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vnpress · 9 months ago

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US$12 million Agyapa deal promoters put Kweku Baako in trouble

The revelations by the Chief Executive Officer (CEO) of the Mineral Income Investment Fund (MIIF) that a staggering US$12 million was spent on the failed Agyapa Royalties deal, has consumed an unintended casualty, veteran journalist, Abdul Malik Kweku Baako.

He had in the wake of the scandal first broke by Ghana newspaper in a spirited defence, insisted that Africa Legal Associates, an Accra-based law firm owned by Gabby Asare Otchere-Darko, was not paid US$2 million for its work on the Agyapa Royalties deal. But recent revelation challenged his claims. The figure was bandied about nearly four years ago by some persons as the amount Gabby and his firm grabbed for their advisory role on the deal. But Baako claimed the quoted amount was way above what was paid to the law firm by the government.

“It is not true that Gabby’s firm got US$2 million from the deal. It is not true that his firm is a beneficiary of US$2 million. It’s not even up to US$105,000. It is the main transaction advisor that paid Gabby. It is about US$103,000. It is not US$2 million”, the editor-in-chief of the New Crusading Guide newspaper had insisted.

He clarified that, Britain-based White & Case LLP International Law Firm a UK-based law firm, was the principal advisor on the deal and Africa Legal Associates worked for the firm. Also there was Bentsi-Enchill, Letsa & Ankomah.

Ghana’s investigations had landed that a knighted Ghanaian with British nationality, Joshua Siaw, a partner in White & Case’s Global Debt Finance Practice and director of the Firm’s Africa practice, is a known friend of Gabby. Their law firms, have been involved in gigs involving the Ghana National Petroleum Corporation (GNPC).

The deal was fraught with assertions of nepotism, the presence of some key individuals and their companies, as well as their financial interests, including the immediate past Finance Minister, Ken Ofori-Atta and his Databank Financial Service,s as well as its South Africa partners, Imara Holding Limited of South Africa.

The roles played by Kofi Bosompem Osafo-Maafo, the son of ex-Senior Minister Yaw Osafo Marfo and a Deputy Director-General at the Social Security and National Insurance Trust (SSNIT) in charge of Investment & Development and Gabby Otchere Darko, a cousin of the President, Nana Akufo-Addo, were also at the centre of the scandal. The revelations by the Chief Executive Officer (CEO) of the Mineral Income Investment Fund (MIIF) that a staggering US$12 million was spent on the failed Agyapa Royalties deal, has consumed an unintended casualty, veteran journalist, Abdul Malik Kweku Baako.

However, before the government placed the deal on ice to allow further deliberations with Civil Society Organizations, Baako held the view that people were making a mountain out of a molehill. He was quoted by Ghanaweb in September 2020, as having likened the conflict of interest situation to Ibrahim Mahama’s companies getting contracts during the John Mahama regime and Nana Konadu Agyemang under the Rawlings regime. “We have to be consistent. We have to be coherent. I don’t expect everybody to agree with me and I expect people who disagree with it vehemently if they like violently, disagree with me and criticize me”. “The way we’re going around this politics, the so-called conflict of interest relative to political office holders over the period, I see a certain huge area of inconsistency and incoherence and I’m worried about that. This is not going to be the last time this will happen; you bet me!”

Ken Ofori-Atta’s company, Kweku Baako Jnr, further insisted that Data Bank, had as of November 2020 not received any payment for their role as financial advisors in the Agyapa Royalty agreement.

This was after it was publicly held that the investment bank which is owned by Finance Minister Ken Ofori-Atta, enjoyed monetary benefit from the deal.

On Tuesday, November 10, 2020, the National Democratic Congress (NDC) demanded the government to retrieve monies it claimed had been paid to Data Bank.

The opposition party gave the government a seven-day ultimatum to recover the monies, the failure of which will propel them to embark on a mammoth demonstration in the first week of December. The protest did not happen.

“The NDC, hereby, demands that President Akufo-Addo retrieves the state’s the billions of cedis his government has illegally paid under the shady ‘Agyapa’ deal to Databank, which is owned by his cousin and Finance Minister, Ken Ofori Atta; African Legal Associates, which is owned by another cousin of his, Gabby Otchere Darko; and their foreign compradors, within the next 7 days, failing which the NDC and other like-minded progressive forces shall embark on series of protest and legal actions to ensure that every pesewa paid to these companies are refunded back to the State for nation-building,” Asiedu Nketia, the then General Secretary of the NDC said at a presser.

In a reaction to the NDC’s demands, Kweku Baako, said that information available to him indicates that Data Bank, received no monies for their role in the deal.

“They made some demands that the president should ensure that some monies paid are retrieved. I have been told on authority that Data Bank as we sit here has not been paid a pesewa or dollar. But some payments have been done for Africa Legal Associates and the others,” Baako disclosed on Peace FM.

But in a post on Facebook, Gabby Otchere Darko, a leading member of the governing party, said that Data Bank, would have been given a certain amount of money had the deal been successful.

“You are calling on your supporters and Ghanaians to join you on the street to stage a massive demonstration to ask for a refund for fees paid to transaction advisors, including law firms for services rendered per a contract? (Note: Databank has received no money for work done so far. Databank was only to earn a success fee at the end of the transaction). That is why, with tongue in cheek, I wish to proclaim: I love the NDC! Fantastic bunch of patriots! Bless them! part of the statement reads.

Almost four years on, it emerged last week at the Public Accounts Committee (PAC) of Parliament, that US$12 million was spent on setting up the offshore company which never materialized, but died on paper.

The CEO of MIIF, Edward Nana Yaw Koranteng, disclosed to the PAC that the Akufo-Addo government spent US$12 million on the failed Agyapa royalties deal.

But the US$12 million might just be the tip of the iceberg as the Auditor-General has, according to Kofi Adams, the Member of Parliament (MP) for Buem and a member of PAC, not captured the Agyapa Royalties deal in his report three years since it collapsed.

It is, therefore not clear how much Databank, Imara Holding Limited of South Africa, White & Case LLP International Law Firm, the two Ghanaian law firms Bentsi-Enchill, Letsa & Ankomah, and Africa Legal Associates, got as transaction advisors for the monetization of Ghana’s gold royalties through the dual listing of the Agyapa Gold Royalties Company on the Ghana and London Stock Exchanges.

Interestingly, MP for Abuakwa South, Samuel Atta Akyea, a cousin of Ken Ofori-Atta and Gabby Ochere-Dark, has cautioned the opposition NDC against its rhetoric on allegations of corruption in the Akufo-Addo government, accusing the party of resorting to concluding that allegations of wrongdoing in the government are crimes, even without any shred of evidence. He gave this caution while reacting to members of the NDC, including the National Communication Officer of the party, Sammy Gyamfi, saying that government officials and individuals implicated in the US$12 million expenditure on the suspended Agyapa Royalties deal are guilty of a crime and would be dealt with if they come to power. Atta Akyea, argued that the fact that something went wrong in the Agyapa deal does not necessarily imply that a crime was committed. He cautioned that the NDC was only endangering Ghana’s democracy with its baseless allegations, which are only aimed at winning the favour of Ghanaians for the upcoming elections, myjoyonline.com reports. “Bear in mind that, in this feverish pitch to succeed Akufo-Addo, the NDC, should not sort of make a fetish of every issue as if everything is criminal. “This nation is not safe with this level of propaganda, and press conferences are not just conclusive evidence of culpability and criminality, as it were. I want to stress also, let’s be careful. If there is a poor error of judgment in the investment in Agyapa, it will not be tantamount to criminality,” the MP is quoted to have said on JoyNews’ Top Story. Sammy Gyamfi, who was also on the show, contended that if there were no illegalities with the Agyapa deal, the Office of the Special Prosecutor (OSP), would not have asked the president to suspend it. He said that OSP’s investigation, proved that the Agyapa deal was not beneficial to the state, which led to its suspension. “If the Special prosecutor was not a court and the President does not agree with the position of the Special Prosecutor, why suspend the bill?” he quizzed. However, Atta Akyea, did not agree with the NDC National Communications Officer’s suggestion.

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newshubgh · 7 months ago

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Profile of Dr. John Ofori-Tenkorang: Former Director-General of SSNIT

President Akufo-Addo has recently made changes at the helm of the Social Security and National Insurance Trust (SSNIT), appointing Kofi Bosompem Osafo-Maafo as the acting Director-General, effective April 15, 2024. This move follows the dismissal of Dr. John Ofori-Tenkorang, the previous Director-General. Let’s delve into Dr. Ofori-Tenkorang’s illustrious career and contributions. Profile of Dr.…

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africatimesnewss · 4 years ago

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Unveiling Shadows: Agyapa Deal Raises Concerns Over Transparency, Nepotism, and Financial Oversight in Ghana's Mining Sector

Recent developments surrounding the Akufo-Addo government's initiatives for the establishment of the offshore Agyapa Minerals Royalties Limited have raised concerns about transparency, procurement irregularities, and value-for-money analysis. The process, aimed at managing Ghana's equity interests in mining companies and royalties per the Minerals Income Investment Fund Act 2018, has come under scrutiny, with allegations of a lack of transparency in the $2 million expenditure and absence of competitive tendering.

Unveiling Shadows: Agyapa Deal Raises Concerns Over Transparency, Nepotism, and Financial Oversight in Ghana's Mining Sector

The subject of Akufo-Addo government’s processes towards the establishment of the offshore Agyapa Minerals Royalties Limited, to receive and manage Ghana’s equity interests in mining companies, as well as royalties per the Minerals Income Investment Fund Act 2018, has gotten murkier with issue lack of transparency, procurement infractions and values for money analysis.

So far, a whopping US$2 million, has been expended on the process, but it is emerging that, it did not go through competitive tendering.

Indeed, some key persons deeply rooted in the transaction, including the Deputy Minister of Finance, Charles Adu Boahene and Gabby Otchere Darko, have openly admitted to insider information and headhunting of the consultants, companies among others.

Although, Mr Adu Boahene, said part of the deal was advertised in 2018, leading to the hiring of Accra-based together with the Bentsi-Enchill, Letsa & Ankomah, the UK-based law firm, White & Case, with whom Gabby Asare-Otchere Darko, had admitted to The Herald, as well as Asempa FM that he has a partnership with, through his private law firm, Africa Legal Associates, Bright Simons of IMANI Africa, disputed this, saying he and other civil society organizations, are yet to see any such advertisement on Agyapa.

But the most bizarre thing, is the explanation offered for recruitment of Kofi Osafo-Marfo, son of Senior Minister Yaw Osafo-Marfo, which was influenced largely based on the fact that he was a classmate of the Deputy Minister of Finance, saying he attended the same secondary school with him, sat in the same class with him, knew him well and could vouch for his brilliance, competence and expertise as CEO Agyapa.

Mr. Adu Boahene had used the explanation to dispel claims of nepotism and lack of merit in the recruitment of Kofi-Osafo-Maafo’s services with reports that, his position was not advertised per the country’s procurement laws.

However, his explanation has turned out to be a lie, as The Herald’s probe revealed that, while Mr Osafo-Maafo, completed Achimota School in 1986, the Deputy Minister of Finance, left the same school a year later.

Mr Adu Boahene, left Achimota School in 1987, together with Koku Anyidoho, and Julius Debrah, therefore, could not have been a classmate of the Senior Minister’s son. Other details were that, the Deputy Finance Minister, had left Achimota School to Mfantsipim School for his 6th Form.

The Deputy Minister was speaking on Joy FM’s Newsfile on Saturday, in response to both the Member of Parliament (MP) Ajumako-Enyan-Esiam Constituency in the Central Region, Cassiel Ato Forson and Bright Simons on detail of the procurement processes towards the establishment of Agyapa Royalties, per the country’s procurement laws.

In particular, Mr Ato Forson, insisted on knowing the involvement of Gabby’s law firm, how much they were paid as legal fees, whether or not, there was competitive procurement process to derive value for money.

The Ranking Member of Finance Committee, disclosed that Mr Adu Boahene, had informed the Finance Committee of Parliament that US$2 million had been spent on the process, but failed to provide details as to what was paid to each of the consultants and companies, although specifics were demanded from him during the committee meeting.

The committee also demanded from the Deputy Finance Minister, the relationship between the consultants and the private companies, as well as public officials at the Ministry of Finance, who worked on the deal but again, Mr Adu-Boahene, could not provide.

On the issue of the Senior Minister’s son; Kofi Osafo-Marfo’s employment as CEO for Agyarpa, Mr Forson, insisted on knowing if government advertised the position with other Ghanaians offered the opportunity to take part in the selection process.

Among other things, the MP, who is on the ticket the National Democratic Congress (NDC), charged the government to make public the selection process it adopted in getting the prospective management team for Agyapa Royalties Limited, arguing that it was necessary because the method government adopted through the Finance Ministry is questionable.

IMANI’s Bright Simons, had also on the issue of conflict of interest, noted that as a member of the 15 Civil Society Organizations (CSOs) ,who have called for a suspension of the Agyapa deal, their investigations have given them cause to question for further explanations about the recruitment process.

According to him, they have made inquiries about the recruitment agency, but did not see any public advertisement leading to the choice of Mr Kofi Osafo-Marfo’s role as CEO in Agyapa.

Mr Simon’s disclosed that, the CSOs have even asked people who ordinarily would have been aware, but none of them have seen anything, suggesting there was a public advertisement in the database and this somehow suggest that the attempt to get Ghanaian talents for Agyapa job, was not as extensive as it should been.

“We have made inquires, we cannot see any public advertising for the role, obviously there should be a database. We have asked a lot of people that traditionally, will be approached and none of them were aware that this recruitment was going on. So that suggests that somehow the attempt to look for a Ghanaian to helm this entity, was not as extensive as possible,” he said.

Mr Simons, further questioned why the Akufo-Addo administration, chose to establish a private market, instead of transacting business directly with existing royalty streaming companies.

“Did they do any analysis of transactions in the private market? And did those analyses suggest that if they had used that method, they would have made less money if they went directly to instead of using this route.And what was the outcome in terms of proceeds per annum ounce of gold in royalties in that analysis?” he quizzed.

But the Deputy Finance Minister, mounted a strong defence over the selection of Kofi Osafo Maafo, saying although he has been recruited as CEO of Agyapa Royalties Limited, he is currently only acting as a consultant on the transaction based on his expertise. He insisted that Mr Osafo-Marfo, is not paid for the services he is providing on the deal.

Mr Adu Boahen, insisted that the selection process was thorough and competitive, adding “It was just a mere coincidence that the person we selected is the son of a member of our party.”

According to him, he and others who worked on the deal, had told the Job recruitment agency that, they wanted a Ghanaian as CEO. This, was after the agency had come up with 30 names for CEO, CFO and Board Members in 2018, after combing the globe for people with expertise in royalties companies either directly or indirectly.

Out of the 30 individuals, some six of them were Ghanaians who qualified for the job, however, it was easier to settle on Kofi Osafo-Marfo out of the six Ghanaians, because he was the only one who had expertise in the area of investment management, asset management person, equity analyst covering mining companies and energy companies. Mr Osafo-Marfo, also had expertise in gold royalty companies and understands the deal.

“So it was on that basis that he was listed and identified as a potential for the role. At that time he was working for SSNIT, which he still is. So we approached him and said look we want to get this transaction off the road. We need somebody to advice us, as to how to structure this, do you mind coming onboard as a consultant for now to help us, which he agreed to do, but by the way it’s an unpaid consultancy role”.

“I must say without his input, his wisdom and knowledge of gold royalty companies, we won’t be where we are today. So, I think he deserves a lot of thanks. It is by sheer coincidence that he happens to be a son of a member of the party. That is by sheer coincidence. He also happens to be a classmate of mine from secondary school. So I was very comfortable with him, because I could vouch for his competence, his brilliance and expertise. So that we did not have a problem with at all”.

He further disclosed that the transaction came about because he had received a call from the Vice-President, Dr. Mahamudu Bawumia one day, saying he had a company in his office and that they were offering to purchase Ghana’s royalty streams.

The Vice-president directed him to evaluate the offer to see if it made sense and after a long discussion and a written offer, he did his analysis and it came out that, what they were offering wasn’t good enough, as it was far below expectation, and as an investment banker with over 20 years’ experience working in London, United States and South Africa, he knew the industry and knew the players and called his banker friends and asked them about their opinions on the offer to the government, adding this how the process started.

Parliament on August 14, approved the controversial Agyapa Mineral Royalty Limited agreement with the government of Ghana, despite a walkout by the Minority.

On his part, Gabby Asare-Otchere Darko, a cousin of both President Akufo-Addo and Finance Minister, Ken Ofori-Atta, had publicly admitted working on Agyapa Royalties Limited, which metamorphosed from Asaase Royalties Limited, because his law firm had been engaged by White & Case in UK ,together with Bentsi-Enchill, Letsa & Ankomah, a corporate and commercial law firm which was involved in the botched PDS transaction in which Electricity Company of Ghana (ECG) was to be privatized.

Gabby Asare-Otchere Darko on Asempa FM, had on Friday, revealed White & Case’s involvement in many government transactions in which his law firm; Africa Legal Associates is involved based on the partnership they have.

But The Herald gathered that, White & Case partner, Joshua Siaw, who is the director of the Firm’s Africa Practice, is a personal friend of Mr Otchere Darko.

This paper’s findings are that, the White & Case LLP, has advised the Ghana National Petroleum Corporation (GNPC) on a landmark liquefied natural gas (LNG) regasification project located in Tema, Ghana.

Coincidentally, Mr Asare-Otchere Darko’s wife, Nana Adwoa Hackman, is a board member of the GNPC and a co-partner of the Africa Legal Associates.

The feeling on the ground is that he; Gabby, use his nexus in the Akufo-Addo government to get government legal deals awarded him to execute, using White & Case, as a clever front to drown any suspicion of favouritism.

One Narinder Surae, who works with White & Case’s office in Johannesburg in South Africa, is part of Gabby’s law firm as an International Transactions’ Advisor.

Narinder boasts of joining Africa Legal Associate in 2018 as International Transaction Advisor and has worked on major international transactions, including the multi-billion-dollar LNG transaction involving GNPC and, first Gazprom, and later, Rosneft, both of Russia.

Meanwhile, Bright Simons, has argued that the money being received by government for the Agyapa agreement isn’t enough.

This, he said, is because all of the nation’s most valuable Assets for further prospecting in addition to 100percent of gold productions are contained in the deal, adding the valuation can be improved to benefit the country better.

“They have the optional mining licences in the agreement which purports to grant this structure the capacity to actually get more. So, to give it away at $1 billion valuation is problematic, too little,” he told host, Samson Ayenini.

According to him, the choice to deal with the public Stocks Market, rather than directly with the private was the fundamental flaw of the agreement.

“The worst thing you can do is to lock your royalties in a transaction where you more or less get all your money upfront and there is no other fiscal room.

“But that money that you get is far less than the money you get, if you had gone to any of the hundreds of gold streaming companies in the world,” he said.

Some economic experts, including the former Finance Minister, Seth Terkper, Lawyer Fui Tsikata and Kofi Ansah of legal and mineral, have kicked against the deal passed by Parliament on August 14th.

As the controversy deepens, key figures involved in the transaction, such as Deputy Minister of Finance Charles Adu Boahene and Gabby Otchere Darko, have openly acknowledged insider information and involvement in the selection of consultants and companies. The Deputy Minister's explanation for the recruitment of Kofi Osafo-Marfo, son of Senior Minister Yaw Osafo-Marfo, has been contradicted by investigative findings, revealing inconsistencies in the claims of nepotism and lack of merit.

#nepotism

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complaintreviews · 9 months ago

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US$12 million Agyapa deal promoters put Kweku Baako in trouble

He had in the wake of the scandal first broke by Herald newspaper in a spirited defence, insisted that Africa Legal Associates, an Accra-based law firm owned by Gabby Asare Otchere-Darko, was not paid US$2 million for its work on the Agyapa Royalties deal. But recent revelation challenged his claims. The figure was bandied about nearly four years ago by some persons as the amount Gabby and his firm grabbed for their advisory role on the deal. But Baako claimed the quoted amount was way above what was paid to the law firm by the government.

The Herald’s investigations had landed that a knighted Ghanaian with British nationality, Joshua Siaw, a partner in White & Case’s Global Debt Finance Practice and director of the Firm’s Africa practice, is a known friend of Gabby. Their law firms, have been involved in gigs involving the Ghana National Petroleum Corporation (GNPC).

However, before the government placed the deal on ice to allow further deliberations with Civil Society Organizations, Baako held the view that people were making a mountain out of a molehill.

He was quoted by Ghanaweb in September 2020, as having likened the conflict of interest situation to Ibrahim Mahama’s companies getting contracts during the John Mahama regime and Nana Konadu Agyemang under the Rawlings regime.

“We have to be consistent. We have to be coherent. I don’t expect everybody to agree with me and I expect people who disagree with it vehemently if they like violently, disagree with me and criticize me”.

“The way we’re going around this politics, the so-called conflict of interest relative to political office holders over the period, I see a certain huge area of inconsistency and incoherence and I’m worried about that. This is not going to be the last time this will happen; you bet me!”

Ken Ofori-Atta’s company, Kweku Baako Jnr, further insisted that Data Bank, had as of November 2020 not received any payment for their role as financial advisors in the Agyapa Royalty agreement.

This was after it was publicly held that the investment bank which is owned by Finance Minister Ken Ofori-Atta, enjoyed monetary benefit from the deal.

On Tuesday, November 10, 2020, the National Democratic Congress (NDC) demanded the government to retrieve monies it claimed had been paid to Data Bank.

In a reaction to the NDC’s demands, Kweku Baako, said that information available to him indicates that Data Bank, received no monies for their role in the deal.

But in a post on Facebook, Gabby Otchere Darko, a leading member of the governing party, said that Data Bank, would have been given a certain amount of money had the deal been successful.

The CEO of MIIF, Edward Nana Yaw Koranteng, disclosed to the PAC that the Akufo-Addo government spent US$12 million on the failed Agyapa royalties deal.

He said that if the NDC has an issue with the deal, they should go to court and should stop calling people who have not been found guilty of any crimes criminals.

“If you convert the thinking of NDC to the decision of a court of competent jurisdiction, we know what the law is like.

“The accused persons will have a right to stand; they present the evidence and the rest of it, and it will culminate in a decision. If we don’t go this route and we still believe that in the name of propaganda, let’s turn the laws of Ghana upside down, and in the convenience of a one-sided press conference, let’s denigrate others; I am afraid that is not democracy, that is propaganda,” the MP said.

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