Parliament has been urged to summon state agencies over delays in disbursing mineral royalties to mining host communities. The Ghana Extractive Sector Multi-Stakeholder Group (MSG) made the call at a media engagement in Accra.
Mineral Royalties Delays Halt Development Projects
The MSG attributed the persistent delays to weak oversight, saying Parliament should ensure compliance with the Minerals Development Fund Act, 2016 (Act 912), by holding State institutions accountable for the timely release of approved funds. Dr Emmanuel Steve Asare Manteaw, a member of the MSG, said that development projects in some beneficiary communities had come to a standstill due to the uncertainty over the timing of disbursements.
A lot of development projects in some of these beneficiary communities have come to a standstill, and the uncertainty over the timing of disbursements makes it difficult for communities to plan development activities with any confidence, Dr Manteaw said. He added that Parliament should ensure that information on delayed payments, including the institutions responsible and the amounts outstanding, was made public to strengthen transparency and accountability.
Reforms to Mineral Royalty Regime Yet to Yield Results
Reforms to the mineral royalty regime had improved the management of extractive revenues, according to Mr Patrick Nomo, Co-Chair of the GHEITI Multi-Stakeholder Group and Chief Director at the Ministry of Finance. However, he noted that revenue leakages and weak inter-institutional coordination continued to constrain the sector’s contribution to national and local development.
Mr Nomo called for stronger institutional collaboration and improved data management to enhance transparency and ensure that resource revenues translated into tangible benefits for mining communities. Under the Minerals Development Fund Act, mineral royalties are distributed through a statutory formula, with district assemblies receiving 55 per cent of the allocation to local government, mining-affected communities 25 per cent and traditional councils 20 per cent.
Parliament Urged to Take Action
The MSG has urged Parliament to summon state agencies to address the delays in disbursing mineral royalties. Dr Manteaw said that Parliament should ensure that the law is enforced and that State institutions are held accountable for the timely release of approved funds. The MSG is calling for increased transparency and accountability in the extractive sector, and for the timely release of mineral royalties to mining host communities.
Parliament should ensure that the law is enforced, and that State institutions are held accountable for the timely release of approved funds, Dr Manteaw said. This will help to strengthen transparency and accountability in the extractive sector, and ensure that resource revenues translate into tangible benefits for mining communities. The MSG is urging Parliament to take action to address the delays in disbursing mineral royalties and to ensure that the law is enforced.
Source: Joy Online
