PRESS RELEASE: $300 Million Tax Waiver For Anglo Gold Ashanti By Government Is Anti-Development

The Gallant Cadres of the National Democratic Congress (NDC) has commended the Minority in Parliament over the government’s decision to grant a $300 million tax concession to AngloGold Ashanti (AGA). 

According the release, they quizzed, who advises the government on mining as

Ghana goes around borrowing millions of USD with interest?

Read the statement below:

Press Release 

To All Media Houses 

The Gallant Cadres of NDC

0505446753 

$300 Million Tax Waiver For Anglo Gold Ashanti By Government Is Anti-Development

        

The government of Nana Akufo-Addo has given a $300 Million tax waiver to foreign company at the time Ghana is struggling to pay workers decent salaries. Meanwhile, we go round to borrow $50 million, $100 million, $200 million and all with interest. So, who advises the government on mining?

Thankfully, the Minority in Parliament has questioned the government’s decision to grant a $300 million tax concession to AngloGold Ashanti (AGA).

Parliament on Thursday ratified a development agreement between the government and Anglogold Ashanti (Ghana) Limited that will see the company investing $880 million into the Obuasi mine. 

Anglogold Ashanti is expected to inject an estimated capital of $1,045 million over the projected 22 years lifespan of the mine.

Under the agreement, per every ounce of gold that would be extracted, Anglogold would donate $2 to a trust for the development of the Obuasi community.

Commenting on the development in an interview, the Minority Spokesperson on Finance, Cassiel Ato Forson, said the deal was badly negotiated. 

He said Ghana would lose in excess of $300 million.

“The intention is that AGA is going to invest $880 million to revamp the Obuasi mines. They are saying that the project will not be viable until the government of Ghana decides to grant them a tax concession worth 259 million dollars,” he said.

But Mr. Ato Forson said the concessions will actually exceed the $258 million stated.

“…Because in the agreement, they are reducing corporate income tax that is supposed to be for mining companies which is 35 percent. In the case of Ashanti Gold, they are giving it to them at 32.5 percent. So I ask myself, why the discrimination? 

For a company with the strength of AGA, why are they reducing their tax exemptions?”

The Chairman of Parliament’s Finance Committee, Dr. Mark Assibey Yeboah, however, justified the waiver.

He explained that this was an improvement over similar agreements signed in the past between government and multinational mining firms.

The government of NPP is wicked, insensitive and wasteful. If Nana Addo is dashing $300 million, why should Ghanaians be levied a 1.5% E Levy? 

Comrade Richard E A Sarpong, Father Casford. The PRO and Convener 0241906363

Mr F Kadan, Secretary. 0242276044

Mr P Buckman, Chairman

0553982819