….As more questionable investments plague Ghana’s mineral wealth
More details about the operations of the Minerals Income and Investment Fund (MIIF) continue to reveal reports of financial mismanagement under the leadership of Edward Nana Yaw Koranteng, the dismissed Chief Executive Officer (CEO).
This alleged mismanagement, has led to the seizure of US$25 million of MIIF’s cash by Fidelity Bank.
MIIF, had underwritten an overdraft facility for Goldridge Limited, a company owned by Dr Sledge Nana Yaw Duodu, also known as “Sledge,” a well-known figure in East Legon, Accra.
MIIF, has reportedly been loaning mineral royalties to private companies, including Goldridge Limited, which serves as a gold aggregator. The loans are typically repaid in foreign currency lodged at Fidelity Bank, after the sale of the gold.
Reports indicate that sometime last year, the Minerals Income Investment Fund (MIIF), operating under the Ministry of Finance, underwrote an overdraft facility for Dr Sledge’s company, Goldridge Limited, through Fidelity Bank. However, the company defaulted on repayment, leading to the seizure of $25 million belonging to MIIF in November 2024.
Additionally, Goldridge Limited, received $94 million from MIIF for a gold trade aggregation deal. However, the transaction resulted in losses, as the foreign currency from the deal was never deposited into MIIF’s coffers.
MIIF, established by the Akufo-Addo government to manage the country’s mineral royalties, suffered significant financial setbacks from this arrangement.
In total, Goldridge Limited, owes MIIF an estimated $119 million.
MIIF’s officials said to be fully aware are the Legal Manager, Nana Serwaa Owusu; Head of Legal and Compliance, Daniel Imadi; Chief Investment Officer, Bubune Sorkpor; and the CEO, Edward Nana Yaw Koranteng and Board Chairman, Prof. Douglas Boateng.
Interestingly, the same institution—MIIF—was to manage Ghana’s mineral wealth through a subsidiary called Agyapa Mineral Royalty Limited.
A decision to list it on the London Stock Exchange (GSE) was suspended after it emerged that it was ridden with a conflict of interest.
Ken Ofori-Atta, the then-Finance Minister, and Lawyer Gabby Asare-Otchere Darko, both cousins of President Nana Akufo-Addo, privately profited from transactions in the company’s name.
Furthermore, it has emerged that, the Bulk Oil Distribution Companies (BDCs) recently had US$30 million stuck with Goldridge Limited. Many believe the BDCs have lost the amount.
MIIF’s use of gold trade aggregators is part of a broader effort to stabilize Ghana’s forex market, support BDCs in purchasing oil, and contribute to stable fuel prices. However, allegations suggest that the management and board of MIIF have deviated from their core mandate, resulting in significant financial losses in both Ghanaian cedis and U.S. dollars.
Established under the Minerals Income Investment Fund Act, 2018 (Act 978), and amended by the MIIF Act, 2020 (Act 1024), MIIF’s primary mandate is to maximize the value of income from Ghana’s mineral wealth, monetize this income responsibly and sustainably, and reduce the national budget’s exposure to fluctuations in mineral income.
Concerns have been raised about MIIF’s Commodities Trading Programme operationalized in August 2023. While the programme reportedly generated inflows of $1.02 billion between August 2023 and September 2024 from the export of 449,554.99 ounces of gold dore, significant financial losses have been linked to its execution.
Among the questionable expenditures is GHC2.2 billion ($150.6 million) disbursed to aggregators for gold trading, allegedly in violation of the law. This has reportedly resulted in massive financial losses for the state.
Furthermore, GHC240 million, was reportedly spent on constructing AstroTurf pitches and a mining museum—projects critics describe as wasteful expenditures.
In November 2024, MIIF allegedly spent GHC84.8 million ($5 million) on an initiative to purchase mining equipment under a “Small-Scale Incubation Project.”
However, the whereabouts of the equipment remain unknown, raising questions about whether the equipment was ever purchased or who the beneficiaries are.
Additionally, GHC1.4 billion ($82 million) has been spent on equity shares in companies such as Asante Gold Corporation, Injaro Ventures Capital Fund, Electrochem Ghana Limited (owned by McDan), and Atlantic Lithium.
Despite these controversies, MIIF has touted some successes, including providing $675.73 million in foreign exchange by the end of September 2024. MIIF argues that this has stabilized Ghana’s forex market, supported BDCs in purchasing oil, and contributed to stable fuel prices.
Beneficiary companies, include Juwel Energy Limited, Maranatha Oil Services Limited, Cirrus Oil Services Limited, Dominion International Energy Ltd, Fueltrade Ltd, Matrix Gas, and Petroleum Warehousing and Supplies Ltd.
However, these claims of success have done little to ease public concerns over the alleged mismanagement of funds, missing gold, and questionable investments.
Calls for transparency and accountability are growing, with the unfolding scandals promising further developments in the coming days.
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