Bill on international transactions, natural resources in the offing

Parliament is taking a major step towards improving transparency in international transactions and addressing the perennial issue of judgment debts arising from non-loan agreements entered into by state institutions in the natural resource sector.

To this effect, the house is facilitating the enactment of the International Transactions and Natural Resources Agreements Bill, 2024, to ensure that international economic agreements, especially within the natural resources space, are scrutinised by the house.

The bill, which is being packaged by private members from both sides in accordance with articles 181(5) and 268 of the 1992 Constitution, is expected to be passed before the current session of the House is dissolved.

When passed into law, the current situation where only loan agreements are scrutinised by Parliament would be widened to include economic agreements by state institutions, especially in the natural resources space.

As part of processes to make the draft bill watertight, a stakeholders' engagement has been organised  by the Parliamentary Service at which key institutions, including civil society organisations (CSOs), made inputs to improve it.

The stakeholders' engagement, which was held to take the input of some key actors in the governance space, brought together the leadership of Parliament, Members of Parliament (MPs) from both sides of the house, and civil society organisations (CSOs) such as the Institute of Economic Affairs (IEA), the Institute of Democratic Governance (IDEG), the African Centre for Parliamentary Affairs (ACEPA), the Centre for Democratic Development (CDD)-Ghana, and the Ghana Chamber of Mines (GCM).

Merit of bill

The Speaker of Parliament, Alban Sumana Kingsford Bagbin, said provisions as specified in the draft bill called for international business or economic transactions that required parliamentary approval to be laid before Parliament.

He said the bill would help to ensure transparency and accountability where citizens had access to information about the terms of agreements and the benefits they brought to the country.

The Speaker added that the passage of this bill would promote transparency and accountability, and enable the country to attract more foreign direct investments into the sector.

"This is because investors are more willing to engage with countries with clear legal framework that ensures fairness in their dealings and protects their investments," he said.

Mr Bagbin also said the bill had the potential of promoting economic growth by ensuring that the resource wealth was managed sustainably to benefit the broader population.

"It will also help to enhance environmental stewardship, ensuring that resource extraction activities do not result in long-term environmental damage, as specific provisions of the bill requires the submission of social and environmental impact analysis of resource agreements before parliamentary ratification or approval," he said.

Diligence

Mr Bagbin observed that notwithstanding the benefits the bill offered, its implementation would not be without challenges.

"In fact, some unscrupulous individuals and corporations may resist the increased transparency and accountability requirements that are contained in this bill, fearing that this legal framework will limit their ability to negotiate favourable terms to address this.

"It is important for government to engage in constructive dialogue with these corporations, emphasising the long-term benefits of a stable and transparent investment environment," he said. 

United goal

The Majority Leader, Alexander Afenyo-Markin, commended the 7th Parliament under the leadership of its Speaker, Prof.  Aaron Mike Oquaye, for commencing the processes for the bill through the engagement of renowned statesman Prof. S.K.B. Asante as the consultant.

He also lauded the eighth Parliament led by  Speaker Bagbin, for continuing the processes for the drafting of the bill.

Mr Afenyo-Markin said the passage of the bill into law would help to address the issue of judgment debts arising from non-loan agreements entered into by state institutions in the natural resource space.

"Non-loan agreements entered by government institutions in the natural resource space have proven costly to the country and need to be subjected to parliamentary scrutiny going forward," he said.

He emphasised that by ensuring that all international agreements were brought to Parliament, the cloak of secrecy would be removed and transparency enhanced.