Govt halts launching of Agyapa IPO

The government has suspended the launch of the Initial Public Offer (IPO) of the Agyapa Royalties deal on the London Stock Exchange (LSE), the Finace Ministry has announced.

It is the case of the Ministry that it will not p[rocxeed with the launch until the probe and corruption risk assessment by the Office of the Special Prosecutor is completed.

Deputy Finance Minister Mr Charles Adu Boahen, who issued the statement said: “By our letter dated 24th September 2020, we furnished your office with the relevant documents pertaining to appointment of the transaction advisors for the Agyapa Royalties project.

Upon receipt of your letter dated 28th of September 2020, whereby you requested additional relevant information, including the opinion of the principal legal advisor to government, this Ministry… submitted additional documents as requested by your Office.

“We wish to use this opportunity to clarify the issue of time in the transaction as captured in the document titled “Overview of Agyapa Royalties transaction”, you referred to in your 28th September letter.

“Kindly note that the document was prepared about two months ago by the transaction advisors to update the Minister on the progress of the transaction. The timing expressed in the document was the intention of the transaction advisors at that time and to launch the IPO by the end of September 2020 to be completed by the end of the year.

This was prior to your office’s request for information and production of document. Kindly note that this Ministry does not intend to proceed with the IPO ahead of the results of the corruption risk assessment by your Office as you may well be aware.

The Special Prosecutor some few weeks ago advised the government to halt plans to launch of an Initial Public Offer (IPO) regarding the Agyapa Royalties agreement.

The OSP in a letter addressed to the Ministry explained that this is to allow his outfit the opportunity to conclude its ongoing corruption risk assessment.

According to Mr. Martin Amidu, “the non-submission of the information and documents pending to be submitted by your Ministry.

“The information and documents you supplied concerned mainly the processes for and the appointment of the Transaction Advisors which goes to the root of any corruption risk assessment.”

The Special Prosecutor, in September, began an investigation into the controversial Agyapa Mineral Royalties deal and wrote officially to Parliament requesting for information on the deal.

Mr. Amidu in his recent letter expressed worry over the inability of the Finance Ministry to furnish it with the relevant documents needed to facilitate key aspects of the ongoing investigation.

He has therefore declared that it will be a premature decision to go through with the launch of the IPO without clearing the fine details relating to the SPV.

“This Office wishes to urge you to abide by the results of the corruption risk assessment it is undertaking on the transaction before moving to the launching of the IPO transaction.

“This Office makes this suggestion on the grounds of prudence on your part and to also not give the impression that the mandate of this Office on prevention of corruption is of no consequence to the transaction.”

He is seeking “information and documents relating to the identification and recommendation by the transaction advisors to your Ministry for appointment.”

Aside from that, he wants to be furnished with “a list of other services providers and or underwriters that may be required to complete the transaction as provided in clause 2.2.1 of the mandate agreement amongst others.”


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