Minority accuses Minerals Commission of poor due diligence on mining leases

The Minority in Parliament has raised concerns over what it describes as major shortcomings in six mining lease agreements approved by the House, accusing the Minerals Commission of failing to conduct proper due diligence before submitting the documents for ratification.

The Ranking Member on Parliament’s Lands and Natural Resources Committee, Kwaku Ampratwum-Sarpong, said the agreements contained several inconsistencies and legal shortcomings that should have been detected and addressed before they reached Parliament.

One of the agreements approved on Thursday, July 31, was the mining lease for Damang Gold Limited, which is currently under the management of Engineers and Planners.

Speaking to journalists after the approval of the leases, Mr Ampratwum-Sarpong argued that Parliament should have subjected the documents to a more thorough review, describing the ratification process as hurried.

He accused the Minerals Commission of failing to ensure that the agreements complied with legal requirements and established procedures before presenting them to Parliament.

“Parliament cannot compromise the national interest by approving defective mining leases involving Ghana’s mineral wealth without the level of scrutiny that the Constitution demands. It appears the Minerals Commission did a shoddy job and exercised poor diligence in ensuring that the lease documents were in proper conformity with the law and standard operating procedures,” he said.

The Minority Ranking Member further alleged that some of the companies involved did not submit their mining operation programmes, a situation he said limited Parliament’s ability to properly assess how the country’s mineral resources would be managed and developed over the lifespan of the leases.

He also raised concerns over what he described as the omission of Ghana’s statutory 10 per cent free carried interest in some of the agreements.

“Perhaps more troubling was the omission in several leases of the Republic of Ghana’s statutory 10% free carried interest. That interest belongs to the people of Ghana. It is neither optional nor discretionary and cannot simply be omitted from mining agreements placed before Parliament for ratification,” Mr Ampratwum-Sarpong stated.

He maintained that mining agreements involving the country’s natural resources must undergo rigorous examination to safeguard Ghana’s interests and ensure that the benefits of mineral exploitation are maximised for citizens.