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CSOs urge Mahama to end SML, Agyapa deals to curb revenue leakages

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The Coalition of Civil Society Organizations (CSOs) focusing on Extractives, Anti-Corruption, and Good Governance has called on President John Mahama’s incoming administration to take decisive action in addressing key governance and financial issues as part of efforts to reset Ghana’s economy.

Among their pressing demands are the termination of the Strategic Mobilization Limited (SML) contract, a review of the Mineral Income Investment Fund (MIIF) Act, and the abolishment of the controversial Agyapa Royalties Deal.

In a joint statement signed by 10 CSOs, the coalition underscored the urgent need for bold reforms to eliminate revenue leakages, strengthen resource management, and promote sustainable and inclusive development.

Key recommendations for reform comprises; termination of the Strategic Mobilization Limited (SML) Contract -The coalition highlighted the inefficiencies of the SML contract, which has diverted millions of cedis into private hands without delivering proportional value to the state. Terminating this contract, they assert, will not only plug revenue leakages but also restore public trust in the government’s financial management practices.

Abolish the Agyapa Royalties Deal and Review the MIIF Act
The CSOs urged the new administration to permanently terminate the Agyapa Royalties Deal, a highly controversial agreement that has been widely criticized for threatening Ghana’s mineral wealth. While the deal was suspended by the outgoing government, the coalition insists that the MIIF Act must be amended to introduce robust transparency and accountability mechanisms for mineral revenue management.

Reform the Energy Sector
To enhance operational efficiency, the coalition called for reduced political interference in State-Owned Enterprises (SOEs) like the Ghana National Petroleum Corporation (GNPC) and Ghana Gas. Leadership stability in the energy sector, they argue, is vital for long-term efficiency and progress.

Combat Illegal Mining and Strengthen Environmental Governance
The coalition recommended repealing the Environmental Protection (Mining in Forest Reserves) Regulation 2022 (L.I. 2462), enforcing existing mining laws, and prosecuting politically exposed persons and traditional leaders complicit in illegal mining. Additionally, they urged the development of a comprehensive strategy to safeguard forests, rivers, and ecosystems for future generations.

Enhance Anti-Corruption Measures
Transparency and accountability across all sectors are essential for Ghana’s recovery, the coalition noted. Their proposals include:

Improving procurement transparency to prevent inflated contracts
Strengthening oversight institutions like the Office of the Special Prosecutor and CHRAJ to prosecute corruption independently.
Ensuring public officials adhere to asset declaration laws.

Inclusive Governance and Lean Government
The CSOs emphasized the importance of a lean government to reduce wasteful spending. They also advocated for inclusive governance by engaging civil society and citizen groups as key stakeholders in policymaking and ensuring equitable resource distribution across regions.

Repeal the Earmarked Funds Capping and Realignment Act, 2017 (ACT 947)
The coalition called for repealing this law to free funds earmarked for specific development purposes. This, they believe, will ensure resources are directed towards economic and social priorities early in the government’s tenure.

Broad Impact and Support for the New Administration
The coalition expressed its readiness to support President Mahama in implementing these reforms, which they believe will create a strong foundation for fiscal stability, inclusive governance, and sustainable development. “The coming year demands bold and decisive action to eliminate revenue leakages and ensure the judicious use of our national resources to drive inclusive development,” the CSOs stated.

The coalition includes prominent organizations such as the the Africa Centre for Energy Policy (ACEP), Natural Resource Governance Institute (NRGI),Ghana Anti-Corruption Coalition (GACC),iWatch Africa,Revenue Mobilization Africa (RMA),Third World Network-Africa (TWN-Africa), IMANI Centre for Policy and Education,Centre for Extractives and Development (CEDA), Institute of Energy Security (IES) and Human Environment and Livelihoods Platform Foundation (HELP Foundation Africa).

By Eugene Davis

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