Minority Rejects Ratification Of Six Mining Leases

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Kwaku Ampratwum-Sarpong

The Minority Caucus on Parliament’s Select Committee on Lands and Natural Resources has strongly criticised Parliament’s approval of six mining lease agreements, accusing the Majority of reducing the House to a “rubber stamp” in the management of Ghana’s mineral resources.

Addressing a press conference in Parliament yesterday, the Ranking Member on the Committee, Hon. Kwaku Ampratwum Sarpong, said the Minority rejected what it described as the “rubber-stamp ratification of defective mining leases,” arguing that Parliament had failed to exercise the level of constitutional scrutiny required before approving the agreements.

The six leases ratified by Parliament relate to Golden Star Wassa Limited at Wassa Akyempem in the Western Region, Maripoma Mining Services Limited at Zongoiri in the Upper East Region, two leases for Perseus Mining Limited covering Ayamfuri and Nanankaw-Agyakusu in the Central and Western Regions respectively, and two leases for Damang Gold Mine Limited, a special purpose vehicle for Engineers & Planners Limited, at Damang in the Western Region.

Mr Ampratwum Sarpong stressed that the Minority was not opposed to mining investment or indigenous participation in the sector, insisting that its objection centred on what it described as breaches of constitutional procedures and inadequate parliamentary oversight.

According to him, Article 257(6) of the 1992 Constitution vests Ghana’s mineral resources in the President in trust for the people, making Parliament’s oversight role critical in ensuring that mining agreements are scrutinised thoroughly before ratification.

He alleged that during committee deliberations, Minority members identified several deficiencies in the documentation accompanying the mining leases.

Among the concerns raised were what he described as unsigned or improperly endorsed cadastral plans, lease documents bearing signatures without the names of signatories, and the absence of mining operation programmes for some companies.

The Ranking Member further alleged that some of the agreements failed to reflect the Republic of Ghana’s statutory 10 per cent free carried interest, describing the omission as a serious governance concern.

He also claimed that, with the exception of Maripoma Mining Services Limited, most of the companies had already commenced or continued mining operations before Parliament ratified their leases.

According to him, such a practice undermines Article 268(1) of the Constitution, which requires parliamentary ratification of mining agreements before they take effect.

“If companies are permitted to mine first and seek parliamentary approval later, then Parliament’s constitutional role is reduced to that of a rubber stamp,” he said.

The Minority also devoted considerable attention to the Damang Mining Lease, arguing that the transaction deserved heightened parliamentary scrutiny because the successful operator, Damang Gold Mine Limited (SPV for Engineers & Planners Limited), is linked to a company founded by President John Dramani Mahama’s brother.

Mr Ampratwum Sarpong said the relationship did not, by itself, establish any wrongdoing or disqualify the company from participating in the mining industry.

However, he argued that it heightened public interest and placed an even greater responsibility on Parliament to ensure that the transaction was subjected to rigorous and transparent scrutiny.

He said Parliament should have been provided with the Minerals Commission’s Tender Committee Report, the complete mining lease agreement, supporting schedules and annexures, as well as details of the commercial terms underpinning the transfer before ratification.

The Minority further argued that the State should have used the transaction as an opportunity to renegotiate its equity participation in the Damang Mine from the current 10 per cent to between 20 and 30 per cent in order to secure greater long-term value for the country.

Beyond the substance of the agreements, the Ranking Member criticised the committee’s reporting process.

He alleged that although members spent two days scrutinising the leases and raising extensive concerns, the final committee report recommending ratification failed to reflect those deliberations.

He also claimed he was not given the opportunity to review the draft report before it was finalised and only received the Chairman’s signed report about ten minutes before proceedings commenced on the Floor of Parliament.

According to him, the Minority was subsequently denied adequate opportunity to present its concerns before the House proceeded to ratify the agreements.

The Minority maintained that while it supports responsible mining, foreign investment and greater Ghanaian participation in the mining sector, Parliament must not compromise constitutional safeguards in approving agreements involving the country’s mineral wealth.

It warned that all alleged procedural breaches, constitutional violations and failures to uphold Parliament’s oversight responsibilities would continue to be documented and subjected to parliamentary and public accountability.

The caucus called for greater transparency, stricter adherence to constitutional requirements and more rigorous parliamentary scrutiny of future mining agreements.

 

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