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CSOs call on Prez Mahama to abolish SML, Agyapa Royalties contracts 

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By: Franklin ASARE-DONKOH

Ten Civil Society Organisations (CSOs) working in the Extractives, Anti-Corruption, and Good Governance sectors, which have come together to form a coalition, have urged the President-elect, President John Dramani Mahama, to earnestly terminate the Strategic Mobilisation Limited (SML) contract.

The CSOs contend that the current SML contract has siphoned off millions of Ghana Cedis into private ownership without providing adequate benefits to the country.

Their demands were contained in an open letter addressed to the President-elect, Mr. Mahama.

The coalition firmly believes that ending this contract will effectively close a major revenue leak and help restore public trust in financial management.

The CSOs include the Africa Centre for Energy Policy (ACEP), Natural Resource Governance Institute (NRGI), Ghana Anti-Corruption Coalition (GACC), iWatch Africa, Revenue Mobilisation Africa (RMA), and Third World Network-Africa (TWN-Africa).

The rest are the IMANI Centre for Policy and Education, the Centre for Extractives and Development (CEDA), the Institute of Energy Security (IES), and the Human Environment and Livelihoods Platform Foundation (HELP Foundation Africa).

In a letter to the President-elect issued on December 11, 2024, the CSOs said, “Your Excellency, the Coalition stands ready to support your administration in implementing reforms that enhance transparency, accountability, and efficiency. 

To this end, we respectfully present the following recommendations as critical priorities for your new administration:

1. Terminate the Strategic Mobilization Limited (SML) Contract, 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.”

The Civil Society Organisations urged the President-elect to terminate the Agyapa Royalties agreement and reassess the Mineral Income Investment Fund (MIIF) Act.

“Abolish the Agyapa Royalties Deal and Review the Mineral Income Investment Fund (MIIF) Act. 

We urge your administration to permanently terminate the Agyapa Royalties Deal, which threatens Ghana’s mineral wealth and has faced widespread public rejection.”

They also advocated for reforms in the energy sector, urging the President-elect to reduce political interference in State-Owned Enterprises (SOEs) operating within this domain.

“Limit political interference in State-Owned Enterprises (SOEs) within the energy sector, especially GNPC and Ghana Gas, to promote leadership stability and operational efficiency.

Address persistent challenges in the energy distribution value chain, which have eroded sector performance and profitability.”

Below is an unedited letter from the coalition: 

OPEN LETTER TO HIS EXCELLENCY JOHN DRAMANI MAHAMA, PRESIDENT- ELECT OF THE REPUBLIC OF GHANA

December 11, 2024

Your Excellency,

Joint Appeal to Advance Transparency, Combat Corruption and Strengthen Resource Management

The Coalition of Civil Society Organizations (CSOs) working on Extractives, Anti-Corruption, and Good Governance extends our heartfelt congratulations on your decisive re-election as President of the Republic of Ghana. 

Your victory reflects the trust the Ghanaian people have placed in your leadership and vision to reset the nation

As you prepare to assume office, we are keenly aware of the constrained fiscal space and significant economic challenges facing our nation. 

Prudent economic management and fiscal discipline, combined with targeted investment in economic and social priority areas, is imperative. 

The coming year demands bold and decisive action to eliminate revenue leakages and ensure the judicious use of our national resources to drive sustainable and inclusive development for all Ghanaians.

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

To this end, we respectfully present the following recommendations as critical priorities for your new administration:

1. Terminate the Strategic Mobilization Limited (SML) Contract

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.

2. Abolish the Agyapa Royalties Deal and Review the Mineral Income Investment Fund (MIIF) Act

We urge your administration to permanently terminate the controversial Agyapa Royalties Deal, which threatens Ghana’s mineral wealth and has faced widespread public rejection. 

While President Akufo-Addo paused its implementation, the underlying MIIF Act requires amendments to introduce stringent transparency and accountability measures in mineral revenue investment.

3. Reform the Energy Sector

• Limit political interference in State-Owned Enterprises (SOEs) within the energy sector, especially GNPC and Ghana Gas, to promote leadership stability and operational efficiency.

• Address persistent challenges in the energy distribution value chain, which have eroded sector performance and profitability.

4. Combat Illegal Mining and Strengthen Environmental Governance

• Repeal the Environmental Protection (Mining in Forest Reserves) Regulation 2022 (L.I. 2462).

• Enforce existing mining laws, investigate the allocation of mineral licenses in forest reserves and prosecute politically exposed persons and traditional leaders complicit in illegal mining.

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

5. Enhance Anti-Corruption Measures Across All Sectors

• Improve transparency in procurement processes to prevent inflated contracts and insider dealings.

• Strengthen oversight institutions like the Office of the Special Prosecutor and the Commission on Human Rights and Administrative Justice (CHRAJ) to independently investigate and prosecute corruption cases.

• Ensure public officials declare their assets transparently and comply with Ghana’s asset declaration laws.

6. Deliver on Your Commitment to Run a Lean Government.

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

7. Prioritize Inclusive Governance

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

• Ensure equitable distribution of resources, addressing disparities across regions to promote inclusive development.

• Repeal the Earmarked Funds Capping and Realignment Act, 2017 (ACT 947) to free funds earmarked for specific development purposes.

8. Early identification and ringfencing of resources of key economic and social priorities

Key priorities in economic and social investment must be identified early in the life of your government, and the needed resources ringfenced.

Your Excellency, we believe these actions align with your First 120 Days Social Contract and will honour the trust Ghanaians have placed in you, providing a solid foundation for restoring fiscal stability, fostering inclusive governance, and achieving sustainable development.

We assure you of our unwavering commitment to collaborating with your administration to build a better Ghana for all.

We wish you success as you prepare to assume office, and we look forward to a fruitful partnership.

Signed by:

1. Africa Centre for Energy Policy (ACEP)

2. Natural Resource Governance Institute (NRGI)

3. Ghana Anti-Corruption Coalition (GACC)

4. iWatch Africa

5. Revenue Mobilization Africa (RMA)

6. Third World Network-Africa (TWN-Africa)

7. IMANI Centre for Policy and Education

8. Centre for Extractives and Development (CEDA)

9. Institute of Energy Security (IES)

10. Human Environment and Livelihoods Platform Foundation (HELP Foundation Africa)

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