Parliament Is Not A Conveyor Belt For Mining Leases –Minority

The Minority Caucus on Parliament’s Select Committee on Lands and Natural Resources has mounted a strong challenge against Parliament’s ratification of six mining lease agreements, accusing the government and the Majority in Parliament of reducing the House to a “conveyor belt” for approving mining leases, without the rigorous scrutiny required under the Constitution.

According to the Minority, Parliament’s constitutional duty is to safeguard Ghana’s mineral wealth on behalf of the people and not merely endorse agreements presented by the Executive.

Addressing a news conference in Accra, on Friday, the Ranking Member on the Committee, Mr. Kwaku Ampratwum Sarpong, stressed that the Minority was not opposed to mining investments, but objected to what it described as defective agreements and an approval process that undermined Parliament’s oversight responsibility.

“Our concern is simple; Parliament cannot compromise the national interest by approving defective mining leases involving Ghana’s mineral wealth, without the level of scrutiny that the Constitution demands,” he stated.

The Minority maintained that while Ghana needs responsible investment and remains committed to promoting a competitive and investor-friendly mining sector, investment must never come at the expense of constitutional safeguards, due process and transparency.

It argued that Article 257(6) of the 1992 Constitution makes it clear that the country’s mineral resources belong to the Republic and are held in trust by the President on behalf of the people, making Parliament’s oversight role indispensable.

“The President is, therefore, a trustee, not an owner. Likewise, Parliament is not a ceremonial institution that merely endorses agreements placed before it by the Executive,” the Ranking Member said.

He added that every mining lease presented to Parliament represents an opportunity to protect the sovereign rights of Ghanaians and that “constitutional duty cannot be sacrificed for speed or administrative convenience.”

The Minority further alleged that during deliberations on the six mining leases, several serious deficiencies were identified in the documents submitted to Parliament.

Among the concerns raised were unsigned cadastral plans, missing endorsements by the appropriate survey authorities, lease documents bearing signatures without the names of the persons executing them, and the failure by some applicants to attach programmes of mining operations needed for Parliament to properly assess the projects.

The caucus also claimed that some of the agreements omitted the Republic’s statutory 10 per cent free carried interest, describing the omission as a serious governance issue since the State’s equity participation in mining operations is neither optional nor discretionary.

“Taken individually, each of these deficiencies raises serious governance concerns. Taken together, they point to an unacceptable lack of quality assurance in agreements involving some of the country’s most valuable national assets,” the Minority argued.

The Ranking Member further accused the Minerals Commission of failing to exercise adequate due diligence before submitting the agreements for parliamentary approval.

“It appears the Minerals Commission did a shoddy job and poor due diligence in ensuring that the lease documents are in proper conformity with the law and standard operating procedure,” he alleged.

The Minority also questioned the constitutionality of mining activities that had allegedly commenced before Parliament ratified the leases.

According to the caucus, almost all the beneficiaries of the mining leases had either commenced or continued mining operations before Parliament ratified the agreements.

Describing the development as a fundamental constitutional concern, the Minority cited Article 268(1) of the Constitution, which requires parliamentary ratification of mining agreements.

“If companies are permitted to mine first and seek parliamentary approval later, then Parliament’s constitutional role is reduced to that of a rubber stamp. The Minority rejects any attempt to normalise such a dangerous precedent. The Constitution must be obeyed, not circumvented,” the statement stressed.

The Minority further expressed concern over one of the six mining lease agreements, arguing that because it involved a strategic producing mine, Parliament ought to have subjected the transaction to far greater scrutiny before granting approval.

It maintained that Parliament ought to have been furnished with all supporting documents, including tender committee reports, financial and commercial terms, operating agreements and other relevant records to enable Members make an informed decision.

The caucus also argued that the transaction presented Government with an opportunity to negotiate a higher State equity participation in the mining asset rather than maintaining the existing 10 per cent free carried interest.

 

 

 

For more  news, join The Chronicle Newspaper channel on WhatsApp: https://whatsapp.com/channel/0029VbBSs55E50UqNPvSOm2z

The post Parliament Is Not A Conveyor Belt For Mining Leases –Minority appeared first on The Ghanaian Chronicle.

Read Full Story