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07.07.2019 General News

Prestea Huni-Valley NDC Commends Gold Fields Ghana Limited.

By Jane Akosua Paintsil
The Gold Fields Ghana funded 32km road.
LISTEN JUL 7, 2019
The Gold Fields Ghana funded 32km road.

The National Democratic Congress (NDC) in the Prestea Huni-Valley Constituency, has lauded the massive impact Gold Fields Ghana Limited continues to have on its host communities.

The NDC says, the company's genuine and proactive plans which continue to give a sigh of relief to host communities should be one other mining firms must take cue.

This kudos from the party comes, as Gold Fields Ghana Limited prepares to inaugurate the 32 kilometre road from Tarkwa Bogoso junction through Huni-Valley to Damang in the Prestea Huni-Valley Municipality, which was solely funded by the mining giant.

In a statement released Saturday, July 6, 2019, and signed by the Prestea Huni-Valley branch NDC secretary Matthew Ayeh, the party also commended former President John Dramani Mahama, under whose term a nine year development agreement was reached with Gold Fields Ghana Limited.

Below is the full statement;

The NDC Fraternity in this district congratulate Goldfields Ghana LTD and the former president ,John Dramani Mahama for their visions in the construction of Bogoso Juction to Wassa Damang road which cost $ 27 million. The construction was funded by savings made by Goldfields Ghana Ltd (GGL) from the nine years development agreement between the government of Ghana, under the former president John Dramani Mahama and Goldfields Ghana for their Tarkwa and Damang Mine sites. The development agreement reduced the corporate tax liability of Goldfields both Tarkwa and Damang Mines . The reduction in the tax items gave the company a savings of almost $33 million annually. It is out of this savings, that the administration of His Excellence John Dramani Mahama asked the management of Goldfields to use part to construct the road.

In effect, the project was funded and started by the John Dramani Mahama's administration and Goldfields Ghana . These savings of Goldfields should have been monies paid to the government in a form of taxes and royalties to the government for development.

Section 49 of the Minerals and Mining Act 206 (Act 703) allows the Minister of Mines on the advice of the Minerals Commission to enter into a development agreement with a mining company. The development agreement allows the mining company to hold certain fiscal imposts stable for an agreed period.

Goldfields first applied for the development agreement in 2004 but never received any significant attention from the then NPP administration. It took the bravity and fortitude of the Mahama administration to negotiate the development agreement which saved the two sites of the mines from collapsing.

The conclusion of the development agreement which was vehemently opposed by the then NPP in opposition did not only save the company, but also allowed the board of the company to inject billion of dollars into their operations in Ghana.

In order to buttress our point, readers can refer to the business news Tuesday 26th April 2016 where delegate of the government led by Hon. Atto Forson, the Deputy Minister of Finance justified the stability agreement with Goldfields Ghana while the NPP then in opposition seriously kicked against to the extent of organizing other civil societies to also kick against it.

We therefore advise the Nana led administration to take a bold step and emulate this bold initiative from John |Dramani Mahama to fix the death trap Tarkwa to Ahwetieso road.

We are by this release admonishing the Nana Addo led administration to give due credit to former president, John Dramani Mahama's administration at least for this project and Goldfields as well, as Goldfields Ghana Ltd is set to inaugurates the Bogoso Junction to Wasssa Damang road on Tuesday 9th July 2019.

Nananom and persons like Dr Tony Aubyn, the then CEO of Minerals Commission will also be remembered for their role and contribution.

We salute and congratulate the management of Goldfields for their strong belief in Public Private Partnership (PPP) and Corporate Social Responsibility.

Thank you.
Matthew Ayeh
(Constituency Secretary)