Prestea-Huni Valley MP urges probe of $120 million debt scandal at Bogoso-Prestea mine

The Member of Parliament for Prestea Huni Valley constituency, Hon. Robert Wisdom Cudjoe, is calling for urgent government intervention and a full-scale investigation into alleged financial and regulatory breaches by Future Global Resources (FGR), the company that took over operations of the Bogoso-Prestea Mine in 2020.

According to the MP, FGR left behind a staggering $120 million debt when its operations collapsed in December 2023. The debt, he revealed, includes unpaid employee contributions, electricity bills, local contractor fees, and statutory obligations to several state institutions.

“They did not pay SSNIT of workers, Ghanaian workers who worked for their state. On the surface of their payslip, they deducted SSNIT, but they never paid the SSNIT on behalf of their workers for three good years.

“They did not pay GRIDCo for the power consumed within the period. GRA, where they have to pay as you earn, they did not pay for the period. They did not pay local contractors. Even the Minerals Commission fee, they did not pay for the period,” he stated.

Hon. Cudjoe described the situation as a clear case of economic sabotage, comparing it to the swift legal action often taken against private individuals who default on statutory payments.

The MP further questioned the role of key regulatory agencies such as the Minerals Commission, GRA, GRIDCo, and SSNIT, whose oversight he believes failed woefully.

Citing the scale of the alleged malfeasance, Hon. Cudjoe called on the Office of the Special Prosecutor (OSP), Operation Recover All Loot (ORAL) and the Economic and Organized Crime Office (EOCO) to launch an immediate investigation into individuals behind Future Global Resources and its operations in the Bogoso-Prestea enclave.

"They should come into investigation of this issue. Who were behind that company that mined gold, made profit, poured gold, took the gold away without paying,” he asserted.

The MP emphasized that the collapse of the mine threatens the livelihoods of countless individuals and the economic fabric of the constituency. He urgently appealed to the Minister for Lands and Natural Resources, Hon. Armah Kofi Buah to fulfill the commitments made to the workers and the community to revive the Bogoso-Prestea Mine. According to him, the previous government’s inaction and lack of commitment led to the collapse of the mine.

After taking over, FGR failed to exhibit a stable financial capacity and subsequently disregarded the Conditional Approval granted to FGR by MLNR, which was contingent upon their ability to meet specific obligations, including maintaining operations at the mine, providing financial resources to pay creditors and fulfilling outstanding debt payments to key institutions such as SSNIT, GRA, GRIDCo, VRA, the Minerals Commission, workers, contractors, and Provident Fund managers.

“Despite these failures and amidst growing frustrations from workers and residents, Heath Goldfields was introduced just ahead of the 2024 elections, supposedly to revive the mine. However, there has been no visible sign of improvement or restructuring.

In lieu, reports have emerged that Heath Goldfields has resorted to deploying armed men to remove gold and valuable assets from the site, an act that raises serious concerns about accountability, legality, and state oversight. Currently, the underground water level has risen significantly, from its initial level 23 to overreaching level 17, posing a serious threat to the mine's future. These developments are disheartening and unacceptable,” he explained.

Hon. Wisdom Cudjoe has urged Minister Armah Kofi Buah to treat this matter as a national priority and to fulfill the commitments he made to the workers and the residents during his recent visit.