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in Extractives/Energy

CSOs Urge Mahama’s Government to Terminate SML, Agyapa Royalties contracts 

Prince Agyapongby Prince Agyapong
December 12, 2024
Reading Time: 5 mins read
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John Dramani Mahama

John Dramani Mahama, flagbearer of the National Democratic Congress (NDC)

Civil Society Organizations (CSOs) in Ghana have issued an open letter to President-elect John Dramani Mahama, calling for urgent action on key economic and governance reforms.  

The coalition of groups, which focus on extractives, anti-corruption, and good governance issues, congratulated Mahama on his re-election victory while urging him to take swift action on several critical priorities. 

The letter, signed by ten civil society organizations including the Africa Centre for Energy Policy, Natural Resource Governance Institute, and IMANI Centre for Policy and Education, highlighted several areas where the new administration should focus its efforts. 

“Your Excellency, the Coalition stands ready to support your administration in implementing reforms that enhance transparency, accountability, and efficiency.” 

Civil Society Organizations (CSOs)

Acknowledging the constrained fiscal space and significant economic hurdles, the Coalition stressed the importance of prudent economic management and fiscal discipline.  

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The CSOs called for investments in economic and social priorities to eliminate revenue leakages and ensure efficient resource utilization.  

“The coming year demands bold and decisive action,” the letter stated, underlining the need to foster sustainable and inclusive development for all Ghanaians. 

“The ongoing SML contract has diverted millions of Ghana Cedis into private hands without delivering commensurate value to the nation.

“Terminating this agreement will seal a significant revenue leakage and restore public confidence in financial management practices.” 

Civil Society Organizations (CSOs)

The Coalition called for its permanent termination and a review of the Mineral Income Investment Fund (MIIF) Act to introduce stringent transparency and accountability measures.  

The controversial Agyapa Royalties Deal has faced widespread public opposition due to concerns about the lack of transparency and threats to Ghana’s mineral wealth. 

To address inefficiencies in the Energy Sector, the Coalition recommended limiting political interference in State-Owned Enterprises (SOEs) within the energy sector, particularly the Ghana National Petroleum Corporation (GNPC) and Ghana Gas.  

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The CSOs also emphasized, “Address persistent challenges in the energy distribution value chain, which have eroded sector performance and profitability.” 

Illegal mining (galamsey) continues to devastate Ghana’s environment, polluting water bodies and depleting natural resources. 

The Coalition recommended repealing the Environmental Protection (Mining in Forest Reserves) Regulation 2022 (L.I. 2462), enforcing existing mining laws, and prosecuting individuals complicit in illegal mining activities, including politically exposed persons and traditional leaders.  

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“Develop a comprehensive strategy to promote sound environmental governance, protecting our forests, rivers, and ecosystems for future generations.” 

Civil Society Organizations (CSOs)

Demand for Accountability and Fiscal Reforms 

WhatsApp Image 2024 12 12 at 16.50.34 51c57ee8

The letter highlighted the need for greater transparency in procurement processes to prevent inflated contracts and insider dealings.  

Strengthening oversight institutions such as the Office of the Special Prosecutor and the Commission on Human Rights and Administrative Justice (CHRAJ) was identified as critical.  

The Coalition also urged the enforcement of asset declaration laws to ensure public officials declare their assets transparently. 

“Fulfill your commitment to running a lean, efficient government that reduces waste and directs public resources toward productive sectors.

“Engage civil society and citizen groups as key stakeholders in decision-making processes.” 

Civil Society Organizations (CSOs)

The Coalition also recommended repealing the Earmarked Funds Capping and Realignment Act, 2017 (ACT 947), to free funds allocated for specific development purposes. 

The Coalition urged early identification and ringfencing of resources for key economic and social priorities, ensuring their protection from fiscal mismanagement.  

This, they noted, would provide a foundation for restoring fiscal stability and achieving sustainable development. 

The Coalition expressed optimism that these recommendations align with the President-elect’s First 120 Days Social Contract, a pledge to implement critical reforms during the early months of his administration.  

They emphasized that these measures would honor the trust Ghanaians have placed in Mr. Mahama, ensuring a solid foundation for good governance and inclusive development. 

The open letter was signed by a coalition of 10 civil society organizations, including the Africa Centre for Energy Policy (ACEP), Natural Resource Governance Institute (NRGI), Ghana Anti-Corruption Coalition (GACC), iWatch Africa, and Revenue Mobilization Africa (RMA).  

The coalition also included Third World Network-Africa (TWN-Africa), IMANI Centre for Policy and Education, Centre for Extractives and Development (CEDA), Institute of Energy Security (IES), and the Human Environment and Livelihoods Platform Foundation (HELP Foundation Africa). 

The Coalition reaffirmed their commitment to supporting the incoming administration in building a better Ghana. “We assure you of our unwavering commitment to collaborating with your administration to build a better Ghana for all,” the letter concluded. 

As President-elect John Dramani Mahama prepares to take office, the recommendations from the Coalition present a roadmap for addressing Ghana’s pressing economic and governance challenges.  

Implementing these measures could mark a significant step toward transparency, accountability, and sustainable development, ultimately restoring public confidence in the nation’s leadership. 

READ ALSO: Bright Simons Lauds Ghana’s 8th Parliament, Warns of Accountability Challenges Ahead 

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Tags: Civil Society Organizations (CSOs)Ghana National Petroleum Corporation (GNPC)Illegal miningMineral Income Investment Fund (MIIF)
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