Since 1992, Ghana has signed mining contracts that have failed to maximize potential revenue from its extractive sector. According to Dr. Bishop Akologo, Executive Director of Technology Integration Point Ventures (TIPV), these agreements have not served the country’s best interests, particularly in terms of revenue generation.
Speaking at a two-day capacity training for journalists in the Upper East Region on Illicit Financial Flows (IFFs), Dr. Akologo expressed concerns over inadequate royalties, which range between 3% and 10%. He emphasized the need for reforms to ensure Ghana benefits more substantially from its natural resources.
“For Ghana to begin reaping appropriate benefits from its extractive sector, the first step is to overhaul how the country gains from these contracts,” Dr. Akologo stated.
The training was organized by the Media Foundation for West Africa (MFWA) with funding from Oxfam in Ghana and the Ministry of Foreign Affairs of Denmark.
Dr. Akologo highlighted that the extractive sector, a dominant contributor to Ghana’s economy, is highly vulnerable to illicit financial flows (IFFs).
“It is prone to corruption because there is monopoly power in awarding contracts. Resources belong to us, but we entrust them to the president, who delegates decisions to a minister. This gives them broad discretionary powers that, if misused, can enrich a few at the expense of the rest of us,” he explained.
He called on Ghanaians to actively monitor government activities in the extractive sector to ensure transparency and accountability.
Dr. Akologo’s concerns align with a recent study revealing that Ghana is losing millions of cedis annually to IFFs in the gold mining sector.
The study, titled “Increasing Domestic Revenue Mobilization by Promoting Corporate, Natural Resource, and Professional Integrity,” was conducted by the Integrated Social Development Centre (ISODEC) in collaboration with Global Financial Integrity.
Covering three years of gold exports and examining mining communities such as Talensi, Kenyasi, Obuasi, and Tarkwa, the report uncovered significant revenue losses due to a lack of transparency and accountability.
The findings revealed that IFFs could occur at various points in the mining value chain. Preliminary data identified the movement of influential individuals and politicians as a key challenge hindering sector integrity.
Ghana ranked 22nd in Africa and 117th globally for illicit financial outflows between 2000 and 2009, according to a report by Global Financial Integrity.
Dr. Akologo urged citizens and stakeholders to push for reforms and accountability in the mining sector to secure the nation’s economic future.
William Nlanjerboh Jalulah, Programmes Manager at MFWA, explained that the training was crucial for journalists due to the financial and economic impact of IFFs on the world, and more importantly, on developing economies like Ghana.
“As part of the United Nations’ Agenda 2030, all member states are required to address illicit financial flows. As an organization that works with the media, we believe building the capacity of journalists is essential for reporting on these critical issues,” he said.
The Media Foundation for West Africa plans to replicate similar trainings for journalists across the country.
Beyond training journalists, the foundation has initiated a series of forums aimed at drawing national attention to the impact of IFFs. On Tuesday, December 3, 2024, former Auditor-General Daniel Yaw Domelovo spoke at the first forum, which focused on “Curbing Illicit Financial Flows in Ghana.”
Source: A1Radioonline.Com | 101.1MHz | Mark Kwasi Ahumah Smith | Bolgatanga
