Govt puts Agyapa Royalties listing on hold

Graphic.com.gh Business News Oct - 05 - 2020 , 11:47

The government has decided to suspend the launch of the Initial Public Offer (IPO) of the Agyapa Royalties deal on the London Stock Exchange (LSE).

The Ministry of Finance has said it does not intend to proceed with the IPO ahead of the results of the corruption risk assessment by the Office of the Special Prosecutor.

In a letter signed by a Deputy Minister of Finance, Mr Charles Adu Boahen, the government served the notice that it will not proceed with the IPO until the Special Prosecutor concludes ongoing corruption risk assessment on it.

The government had planned to launch the IPO in September 2020 to be completed in December 2020.

The Special Prosecutor had requested for all available documentation to enable him do the corruption risk assessment on the deal.

Below is an excerpt from the letter signed by Mr Adu Boahen

"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.
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"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, Mr Martin Amidu asked the Ministry of Finance to suspend the launch of the IPO of the Agyapa Royalties deal on the London Stock Exchange (LSE).

This, he said was to enable his office [Special Prosecutor] to complete the corruption risk assessment.

In a letter addressed to the Minister of Finance, the Office of the Special Prosecutor argued that the non-submission of all information and documents on the Agyapa Royalties transaction from the Ministry of Finance was impeding his ongoing corruption risk assessment on the deal.

He indicated that despite the fact that the Ministry had already submitted some documents to the office, critical information that concerns the launch of the Initial Public Offer (IPO) for Agyapa Royalties remain outstanding.

“This Office would have wished to complete its corruption risk assessment on the Agyapa Royalties Transaction soonest but for 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.”

“Information and documents relating to the identification and recommendation by the transaction advisors to your Ministry for appointment 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, that are critical to any through corruption risk assessment are also outstanding. The legal opinions particularly of the principal legal advisor to the government under the Constitution are relevant to ensure compliance with her recommendations as part of any corruption risk assessment.”

The Special Prosecutor therefore urged the Ministry to hold on with the launching of the IPO until his office completes the corruption risk assessment it is currently undertaking.

“In the circumstances, 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.”

The Special Prosecutor had earlier written to Parliament to furnish his office with the necessary documents regarding the deal.

The request was in line with the mandate of the office to exercise the functions and powers of prevention of corrupt activities.