Political scientist, Prof Ransford Gyampo, has expressed reservation over the proceeds from lithium mining agreement between government and Barari DV Limited.
According to him, the motive behind the eloquent write-up of two legal and mining experts, Kofi Ansah and Fui Tsikata on the matter didn’t capture the entire truth.
He revealed that the write-up instead abused the truth and contributed to the unexamined view from some quarters that, all is not well with Ghana’s Lithium deal.
Prof Gyampo stated that the assertion also that the foreign companies are probably even going to run into losses and Ghana would make more profit than the foreigners is far from the truth.
“Your calculation of what we are likely to get is quite inaccurate. The foreigners aren’t going to be mining only lithium. There is aluminum, there is silica, and there are other by-products that have serious profit and market value. Ignoring these in your calculations and quoting a lower amount to be realized is problematic.”
Prof Ransford Gyampo
Prof Gyampo noted that Kofi Ansah and Fui Tsikata in their statements included the corporate tax to be paid by the foreign company to the state of Ghana the resources or gains likely to be made by the country.
With this, he stated that the foreign company insisted that it has been granted a 10-year tax holiday under the Free Zones program, plus special concessions that will make it pay 30% to 50% the usual cost of electricity as lithium processing consumes an awful lot of electricity, which raises doubts about Ghana generating needed income.
“So how do we expect more income when we have given them ten years to operate without paying taxes? How can we benefit more when they will only pay about 30% of the cost of electricity they use?”
Prof Ransford Gyampo
Terms of agreement with lithium mining
Furthermore, Prof Gyampo explained that the advantages between service contract, joint ventures and the preferred colonial concessionary arrangements, have long been settled in the literature and through other scholarly research.
He highlighted that it is a settled debate that countries that are serious in their quest to extricate themselves from the quagmires of poverty and underdevelopment, would go for either a service contract or joint venture agreement in any natural resource deal.
Moreover, Prof Gyampo emphasized that the foreigners who have entered into the agreement with government can succeed in using whatever means to buy their way in getting the green light to mine lithium.
However, he expressed that relevant stakeholders would mobilize the community to ensure that this doesn’t happen.
“The mobilization has already commenced. Do not forget that I have a personal interest in this fight because, I am a Ghanaian who is appalled by how we have pandered to Ali Mazrui’s paradox which states that, Africa is the richest continent in terms of natural resources, yet the poorest continent in terms of everything.
“Secondly do not forget that I come from Mfantseman and I am from Prabiw, Saltpond, and I take a lot of inspiration from P.A.V. Ansah (the brother of Mr Kofi Ansah).”
Pro Ransford Gyampo
Meanwhile, former Chief Justice, Sophia Akuffo, has iterated her stance on the Ghana-Barari DV Limited deal.
She indicated that the country will forever be entangled with the International Monetary Fund (IMF) if it continues to sign similar agreements on other natural minerals.
“Gold, diamond, oil, bauxite, those are what we call traditional minerals; all these have been there. Since we became independent, we have been going to the IMF, borrowing, with all kinds of terms, and we ask ourselves why… If this is how you are going to continue to exploit and extract your natural resources, don’t expect ever to be free of the IMF. It becomes like cyclical malaria.”
Sophia Akuffo
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