ECOWAS Court Rules Agyapa Royalties Deal Legal: Ghana Anti-Corruption Agencies Fail to Provide Evidence
The Economic Community of West African States (ECOWAS) Court of Justice has made a ruling on the controversial Agyapa Royalties deal in Ghana. The court has stated that there is nothing illegal with the deal, which the government of President Nana Addo Dankwa Akufo-Addo is seeking to implement. This comes after three anti-corruption agencies in Ghana – Transparency International, Ghana Integrity Initiative (GII), and Anti-Corruption Coalition – filed an application to stop the government from proceeding with the deal, claiming it was not in the interest of Ghanaians.
The ECOWAS court dismissed the application on the grounds that the anti-corruption agencies failed to provide evidence that the deal would deprive the people of Ghana of their common wealth. The judges, Justice Sengu Mohamed Koroma, Justice Dupe Atoki, and Justice Ricardo Cláudio Monteiro Gonçalves, also noted that the Parliament of Ghana had approved the processes involved in setting up the Agyapa Royalties deal. They further emphasized that the shares to be floated on the London Stock Exchange (LSE) did not mean depriving Ghanaians of their common wealth, as Ghana owns 100% of the deal.
The court’s 34-page judgment highlighted the relief sought by the anti-corruption agencies, including a declaration that the government’s actions in entering into the agreement interfered with the rights guaranteed under the African Charter on Human and Peoples Rights. The ruling further stated that the Applicants failed to show how the presence of politically exposed persons within the deal affected the exploitation of Ghana’s common wealth. The court dismissed the claims, emphasizing the importance of substantiating complaints with evidence.
The Agyapa Royalties deal was initiated in June 2018 when Parliament passed the Minerals Income Investment Fund to manage equity interests in mining companies and receive royalties on behalf of the Government of Ghana. The government introduced an amendment to the act in July 2020 to ensure the independence of the Special Purpose Vehicles (SPVs) established by the Fund. The Fund then set up Agyapa Royalties Limited, a company incorporated in the tax haven of Bailiwick of Jersey, to manage investments and raise funds through share trading on the Ghana Stock Exchange and the London Stock Exchange. The funds raised will be used for developmental initiatives in education, primary capital, health, and infrastructure.
The ECOWAS court’s ruling provides legal validation for the Agyapa Royalties deal and dismisses the concerns raised by the anti-corruption agencies. The government can now proceed with implementing the deal, which is aimed at generating funds for development projects in Ghana. However, the controversy surrounding the deal is likely to continue, with critics arguing that it lacks transparency and accountability. The ruling may also have wider implications for similar resource-based investment deals in West Africa, as it sets a precedent for the treatment of such agreements by regional courts.
In summary, the ECOWAS Court of Justice has ruled that the Agyapa Royalties deal in Ghana is legal, dismissing the claims made by anti-corruption agencies. The court emphasized that Ghana owns 100% of the deal and that the shares to be floated on the London Stock Exchange do not deprive Ghanaians of their common wealth. The ruling provides legal validation for the government’s plans to implement the deal, despite ongoing criticisms about transparency and accountability.
