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Lithium deal needs be approved by parliament – Mahama

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Previously, Ransford Gyampo, a professor at the University of Ghana, said Parliament could not be trusted to scrutinise the Lithium contract if it is finally brought to the House for confirmation. Prof Gyampo stated that interested parties in the contract may simply buy Members of Parliament (MPs) to have their way in implementing the agreement, which has been labelled as terrible.

Former President John Dramani Mahama has joined efforts for the government to bring the Lithium deal before Parliament.

He expressed confidence that MPs will thoroughly scrutinise the agreement if it is finally submitted to the House.

“The lithium agreement must come to parliament, it must go to Parliament when it gets to parliament, I trust that our MPs will look into it and give Ghana a good deal,” he stated.

Previously, Ransford Gyampo, a professor at the University of Ghana, said Parliament could not be trusted to scrutinise the Lithium contract if it is finally brought to the House for confirmation.

Prof Gyampo stated that interested parties in the contract may simply buy Members of Parliament (MPs) to have their way in implementing the agreement, which has been labelled as terrible.

“We don’t trust Parliament, people are hungry and so they will succeed in buying everybody. The history of this Parliament is a Parliament that barks but does not act. I do not trust Parliament,” Prof Gyampo said on the Key Points on TV3 on Saturday, December 9.

The Minority in Parliament had asked that the government place before the House the 15-year mining lease with Barari DV Ghana Limited before the start of lithium mining at Ewoyaa in the Central Region’s Mfantseman Municipality.

According to John Jinapor, ranking member of the Mines and Energy Committee, a deal of this sort must first be approved by Parliament under Article 268 of the 1992 Constitution.

“Article 268 of the 1992 Constitution is explicit and it states that any transaction, including but not limited to the application for a licence to exploit natural resources, requires prior parliamentary approval,” the Yapei Kusawgu legislator told media in Parliament on Thursday, December 7. On that note, I want to state unequivocally that the deal reached between the Ghanaian government and Barari DV should be put before Parliament as soon as possible.

“Let me assure the people of Ghana that the Minority will not let you down. We will scrutinize the agreement, we will not allow this agreement to be rushed through. We will seek the guidance and the involvement of civil society, and we will speak to important personalities including former Chief Justice, Justice Sophia Akuffo who has been vocal on this Lithium agreement. The new order is lithium. Lithium is more profitable than gold, lithium is more profitable than diamond and the world order is moving to this green mineral. So, the Minority will insist that Ghana benefits from these resources and that the terms and agreement, if they are not in the interest of Ghana, the Minority will kick against that.

“We demand that the Akufo-Addo government tables or lays this agreement before Parliament without delay. Let me caution Barari that any attempt to commence mining without parliamentary approval will be illegal. A future NDC government, upon assumption of office on January 7, 2025, all mining licenses that have not met the necessary parliamentary approval, we will do the proper thing and ensure that they cease until they seek the right approval from Parliament. ”

Meanwhile, the Minister of Lands and Natural Resources, Samuel Abu Jinapor, has intimated that the pact may require legislative approval.

He emphasised that Parliament must approve the pact before it becomes completely legitimate.

He made the remarks during a news conference in Accra on Thursday, December 7, during which he explained the accord.

It is worth recalling that former Chief Justice of the Republic of Ghana, Sophia Akuffo, stated that the lithium lease was incomplete without confirmation by Parliament.

According to her legal opinion, this specific transaction should have been submitted to Parliament for approval.

“My legal view is that it is a transaction that requires ratification, it is not complete. This is a document, it is signed and sealed and delivered, but it is a deal that has to be ratified by a named authority, that is the Parliament of the Republic of Ghana,” she said while speaking as a Distinguished Scholar of the Institute of Economic Affairs (IEA) in Accra on Tuesday, November 28.

Madam Sophia Akufo further stated that, despite assertions that this specific arrangement is beneficial to the country, the pact is no different from prior ‘Guggisberg-type’ accords that have not benefited Ghanaians.

“The Minister of Lands and Natural Resources and the CEO of Minerals Commission have touted as favorable to Ghana, surpassing all those other Lithium leases around the world.

“It is not different in principle in the substance from any of Ghana’s previous colonial times types of agreements, some call it the Guggisberg model, whatever description, all those agreements are colonial type of agreements, which over the years have yielded very little good to the overall benefit of the average Ghanaian.

“In modern best practices the exploitation or extraction of mineral resources discovered by either a joint venture agreement whereby the host country takes an agreed ownership in the mining company or a service contract whereby the host country is the owner, contracts the mining company and the mining company can be selected through transparent competitive bidding process to mine the mineral and to reinvest for its cost of reduction plus profit margin so that the mining company is in contract to the owner. The ownership of the mining remains completely in the hands of the state,” she said.

But, speaking at a press conference, Samuel Abu Jinapor stated, “Suffice to say that it is the first time in the history of our country that we have successfully negotiated for 10% royalties for any mineral, which is one of the highest for the exploration of any mineral across the world.”

“We have already secured 19% state participation in this mining company, with the requirement to scale it up to a minimum of Ghanaian participation through listing on the Ghana Stock Exchange for shares to be made available to Ghanaians and Ghanaian entities,” he added.

“What this simply means is that when it is all over, Barari DV Limited, the holder of this mineral right of lithium, Ghanaian and state participation will be 30 per cent and foreign participation will be a maximum of 70 per cent and this has never happened in the history of our country in respect of any mineral.

“And for the first time in the history of our country, a mineral lease contains provision for the establishment of a refinery and that is value addition and appreciation and this is the first time.”

Ghana awarded a 15-year mining lease to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, to begin building and mining lithium at Ewoyaa in the Central Region’s Mfantseman Municipality.

The lease includes new and improved terms designed to guarantee that the government gets the most out of this commodity. This involves a rise in royalty rates, state and Ghanaian engagement, and the addition of value to the extracted material.

The granting of the mining lease followed the completion of exploration and feasibility studies by the firm, as well as a series of talks between the government and the corporation.

The lease comprised 42.63 square kilometres and granted the business the sole right to work and produce lithium and related minerals in the region in compliance with the country’s mining regulations.

Lithium is one of the primary minerals used in the manufacture of lithium-ion batteries, which are being marketed as a viable alternative to fossil fuels as the globe battles climate change.

Emissions from internal combustion engines utilising fossil fuels have been highlighted as a key cause of the climate catastrophe.

To address this, world leaders are advocating a green energy transition to gradually reduce, and eventually eliminate, carbon emissions.

Some nations have already established legislation to phase out automobiles that run on fossil fuels. This has resulted in a burgeoning market for the battery sector and the minerals necessary for battery manufacture, known as green minerals or key minerals.

African countries that mine lithium now export the material in its unprocessed form.

In 2017, Barari Ltd began exploring lithium in the nation and discovered high-quality lithium in commercial quantities in Ewoyaa.

Geological research has also revealed deposits in several regions of the nation, primarily in Cape Coast, Kumasi, Sunyani, Bole, and Wa. However, the government has yet to begin mining for this material.

Earlier, at a brief ceremony to sign a mining lease for Barari DV Ltd., Mr Abu Jinapor stated that the government decided not to treat this mineral in the same manner as other minerals.

Before issuing any mining licence, it was therefore required to create a unique strategy for the exploitation and administration of this mineral.

Following a series of discussions, he stated that Cabinet adopted a strategy for the exploitation and management of green minerals, including lithium, and that the mining lease awarded to the firm contains the policy authorised by Parliament.

“The Lease we are signing today differs from our standard Mining Lease, in that, it incorporates the agreed terms we have concluded with the company, based on the Policy approved by Cabinet,” the Minister explained.

Mr. Jinapor stated that the negotiated terms provide better value to the government and people of Ghana in the mining of this commodity.

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Gov’t settles on blue and white as new paint for basic schools

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He also announced the replacement of the brown and yellow outfits. "We are modifying the uniforms of public elementary schools across the country. The yellow and brown that you see now will go. Reformation is coming to a community near you, and you will witness it." The education minister expanded, saying that this project is part of the government's attempts to demonstrate to critics that its concentration is not exclusively on secondary education.

Dr Yaw Osei Adutwum, Minister of Education, has declared that the government intends to repaint all public basic schools in blue and white, replacing the present brown and yellow.

This programme is part of a rebranding campaign to improve the appearance of the institutions.

Dr Adutwum went on to say that this is only one of several initiatives targeted at revitalising and improving basic education in the country.

“We’re moving to blue and white. We are painting all of the schools to give them an appealing appearance. This is the revolution Ghana deserves, and it is on its way,” the minister said at a “The free SHS tale” discussion in Accra on Tuesday, April 23, 2024.

He also announced the replacement of the brown and yellow outfits.

“We are modifying the uniforms of public elementary schools across the country. The yellow and brown that you see now will go. Reformation is coming to a community near you, and you will witness it.”

The education minister expanded, saying that this project is part of the government’s attempts to demonstrate to critics that its concentration is not exclusively on secondary education.

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We’ve not been paid GH¢1 billion; KPMG’s assertion is false – SML

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SML further stated that KPMG's inability to mention that 31.5 percent of the total GH¢1,061,054,778.00 taken as taxes provides a very uneven "impression of the relationship between the compensation, investment, and other related costs." "SML believes that KPMG's failure to include GRA taxes of 31.5% taken before payment, interest payments of 32% plus SML's investment repayment, and other taxes/duties over the period creates an unbalanced impression of the relationship between compensation and investment and other related costs. This omission is really deceptive.

Strategic Mobilisation Ghana Ltd (SML) denied receiving GH¢1,061,054,778.00 for a revenue mobilisation contract with the Ghana Revenue Authority (GRA).

President Akufo-Addo ordered KPMG to audit the contract between the GRA and SML on January 2. KPMG’s findings revealed that SML received a total of GH¢1,061,054,778.00 from 2018 to date.

However, Strategic Mobilisation Ghana Ltd responded by denying the charges, noting that KPMG reported the amount “without reference to the investments made and the taxes paid” during the review period.

“KPMG quotes a figure as compensation to SML. It is interesting to note that this figure is quoted without reference to the investments made and the taxes paid by SML over the period within the consolidated contract

“The compensation of GH¢1,061,054,778.00 stated by KPMG is inaccurate.”

SML further stated that KPMG’s inability to mention that 31.5 per cent of the total GH¢1,061,054,778.00 taken as taxes provides a very uneven “impression of the relationship between the compensation, investment, and other related costs.”

“SML believes that KPMG’s failure to include GRA taxes of 31.5% taken before payment, interest payments of 32% plus SML’s investment repayment, and other taxes/duties over the period creates an unbalanced impression of the relationship between compensation and investment and other related costs. This omission is really deceptive.

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The president needs to show leadership to stop ‘dumsor’ – Agyeman-Duah

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Professor Agyeman-Duah also chastised the administration for the slow speed at which it is addressing electricity concerns. He argues that given the frequency of power outages, the government should have taken a more serious approach to finding long-term solutions, but this has not been the case.

Professor Baffior Agyeman-Duah, a Governance Expert, has urged President Nana Addo Dankwa Akufo-Addo to show leadership by summoning all major players in the power sector, including the Electricity Company of Ghana (ECG), the Ghana Grid Company Limited (GRDCo), the Volta River Authority (VRA), and the Public Utilities and Regulatory Commission (PURC), and giving them marching orders to resolve the power crisis.

He believes he’ll be astonished if the president hasn’t done so already.

Speaking on the Ghana Tonight broadcast on TV3 on Monday, April 22, Prof Ageyman Duah remarked, “I will be surprised that the president has not called the leadership of the VRA, GRIDCo, ECG, and PURC, to sit them down to give them the marching order that he doesn’t like what they are doing.

“That is leadership, we need the president to be giving the marching orders. As I said, if he has done it privately I don’t know but based on the public pronouncements by these state agencies in charge of the energy sector, it seems like he hasn’t done that.”

Professor Agyeman-Duah also chastised the administration for the slow speed at which it is addressing electricity concerns.

He argues that given the frequency of power outages, the government should have taken a more serious approach to finding long-term solutions, but this has not been the case.

He went on to say “The government hasn’t been too active in seeking solutions to problems”

Prof. Baffour Agyeman-Duah also urged the state power distributor, the ECG, to produce a load-shedding schedule.

This, he believes, will help power consumers arrange their lives more effectively.

“The wise thing to do is to issue a timetable,” Professor Baffour Agyeman-Duah said.

Meanwhile, Richard Ahiagbah, Director of Communications for the New Patriotic Party (NPP), has stated that power shortages in certain areas of the country are annoying.

However, he stated that there is light at the end of the tunnel for the problem.

Mr Ahiagbah ascribed the problem to the Electricity Company of Ghana’s (ECG) maintenance work.

He told us that the job would be done quickly.

“The recent power outages have been understandably frustrating. However, there is an end in sight. The maintenance works are almost complete, and we can soon expect access to an uninterrupted power supply around the clock, as we have become accustomed to under the Akufo-Addo-Bawumia Administration.”

Regarding the criticism that members of the National Democratic Congress (NDC) have made against the administration over the outages, he stated, “The NDC is the last political organization to point fingers because Ghana has not forgotten the hurts of the ‘real dumsor,’ suffered under H.E. Mahama.

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