..Says it only negotiated for 13% interest
The Mineral Income and Investment Fund (MIIF) management, led by Acting Chief Executive Officer, Justina Nelson, has strongly refuted claims of engaging in illegal transactions, describing a recent publication by The Herald newspaper as, “totally false, untrue, and a misrepresentation of facts.”
In a rejoinder issued yesterday by MIIF, management emphasized that, the approval of the Controller and Accountant General, is only required for opening bank accounts and not for transferring funds between already existing accounts.
“The approval of the Controller and Accountant General is only required for the opening of bank accounts and not for the transfer of funds from an already existing account to another already existing account. The transfers were made in the best interest of the Fund and the country, as the funds before their transfer were attracting zero (0) interest under the erstwhile management. The current management has been able to negotiate up to 13% interest on those funds,” the statement read.
The Herald newspaper, had reported that MIIF, was engaging in questionable financial dealings under its new leadership, alleging that GHC1.5 billion was transferred across MIIF accounts in various banks, including Consolidated Bank, Access Bank, Fidelity Bank, and Zenith Bank, where the new CEO, Justina Nelson, previously worked before her appointment in January this year.
Additionally, the report claimed that, a $10 million payment was made to BH Minerals Ltd, a company allegedly linked to the opposition New Patriotic Party (NPP) and illegal mining activities, commonly known as “galamsey.”
MIIF, however, refuted these claims, clarifying that an operational agreement dated December 4, 2024, was executed by the then-CEO of MIIF.
Under this agreement, $10 million out of an agreed-upon $20 million, was paid before the current acting CEO took office.
Citing the Minerals Income Investment Fund Act, 2018 (Act 978) as amended, MIIF, maintained that all its financial dealings were within the legal framework.
The management referenced sections of the Act that empower the Fund to manage and invest mineral income in accordance with internationally recognized best practices for asset allocation and risk management.
“With emphasis on the sections of the MIIF Act reproduced above, we state that the claim in your story that MIIF is engaged in illegal transactions is totally false, untrue, and a misrepresentation of facts,” the rejoinder stressed.
In an effort to ensure transparency, MIIF, invited The Herald, to review relevant documents supporting their claims.
“For the sake of transparency, we are willing to meet you at your convenience to show you the relevant documents in support of the facts stated above. In the circumstances, we request that a rejoinder is published with the same publicity as the initial story to correct the erroneous impression created in the mind of the general public,” the management stated.
The controversy surrounding MIIF’s financial dealings continues to generate public interest, with stakeholders keenly observing how the matter unfolds.
Below is the full statement;
REJOINDER: QUESTIONABLE DEALINGS UNDER THE NEW MINERAL FUND MANAGERS RAISE CONCERN
Our attention has been drawn to a story with the caption “Questionable Dealings under the New Mineral Fund Managers Raise Concerns” published on your online platform.
A portion of the story states as follows;
“Interestingly, despite the claim that an audit is going on, reports reaching The Herald indicates that, there has not been a shift from the practices of the previous management led by Edward Nana Yaw Koranteng.
Further reports suggest the MIIF, continues to engage in illegal activities by persisting with investments made during the previous management, relying on an Investment Policy guideline that has not been approved by the Minister of Finance or ratified by Parliament, contrary to the Public Financial Management Act.
For example, reports are that last week, a substantial amount of GHC1.5 billion was transferred within MIFF accounts at various banks, namely Consolidated Bank, Access Bank, Fidelity Bank and Zenith Bank, where the new CEO, Justina Nelson, used to work until her appointment in January this year.
The Controller and Accountant General, should legally approve the opening and transferring of funds, but this is said to be missing in the ongoing transactions.
Additionally, US$10 million was paid to BH Minerals, owned by Appiah Yawson, who has been linked to the opposition New Patriotic Party (NPP) and Galamsey activities in the country”
We refer to section 3(f) of Minerals Income Investment Fund Act, 2018 (Act 978) as amended which states as follows;
“Section 3- Powers of the Fund
The Fund may
() subject to compliance with the Investment Guideline provided for in section 39, invest in, purchase, maintain, divest from, sell or otherwise realise assets and investments of any kind;
Section 4 (1a) and (1d) also provide as follows;
“Section 4- Functions of the Fund
(1) For the purposes of achieving the objects of the Fund, the fund shall
(a) Manage, deal in and invest minerals income accruing to the Republic received by the fund;
(d)Seek the best possible financial returns on investments having regard to internationally recognised best practices for
(i) Asset allocation and risk management;
(ii) Protecting the long term economic value of the Fund and its assets; and
(iii) The cost of capital of the Fund and other incidental costs related to the Fund:
Lastly section 32 (1l) and (2) state as follows;
“Section 32 Bank Accounts
(1) Minerals income and income from investments and other receipts of the Fund shall vest in the Fund and shall be paid into bank accounts opened by the Fund with the approval of the Controller and General. Accountant
(2) Subject to the Public Financial Management Act, 2016 (Act 921), the Fund and any Special Purpose Vehicle may open, maintain and operate bank accounts in foreign currency both within and outside the Republic and receive payments in any currency, including the accounts of the Funds and retain the proceeds in and make payments from the accounts and the Fund considers fit.”
With emphasis on the sections of the MIIF Act reproduced above, we state that the claim in your story that MIIF is engaged in illegal transactions are totally false, untrue and a misrepresentation of facts.
The approval of the Controller and Accountant General is only required for the opening of bank accounts and not for the transfer of funds from an already existing account to another already existing account.
Again, the transfers were made in the best interest of the Fund and the country as the funds before its transfer were attracting zero (0) interest under the erstwhile management. The current management has been able to negotiate up to 13 % interest on those funds.
In respect of payment to BH Minerals Ltd, an operational agreement dated 4 December 2024 was executed by the then Chief Executive Officer of MIIF. Ten Million Dollars ($10,000,000.00) out of an agreement amount of Twenty Million Dollars ($20,000,000.00) was paid before the current acting Chief Executive Officer took office.
For the sake of transparency, we are willing to meet you at your convenience to show you the relevant documents in support of the facts stated above.
In the circumstances we request that a rejoinder is published with the same publicity as the initial story, to correct the erroneous impression created by your publication in the mind of the general public.
From Management
The post MIIF denies illegal transactions in cash movements appeared first on The Herald ghana.
