MPs Told to Act on Mineral Royalty Payments
Ghana's Parliament has been urged to take action over delays in disbursing mineral royalties to mining host communities. The Extractive Sector Multi-Stakeholder Group (MSG) made the call after a review of the 2023 Ghana Extractive Industries Transparency Initiative (GHEITI) Report.
Delayed Payments Stalling Development Projects
The MSG said the delays in disbursing mineral royalties were stalling development projects in mining host communities. Dr Emmanuel Steve Asare Manteaw, a member of the MSG, attributed the persistent delays to weak oversight. He said 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.
According to Dr. Manteaw, a lot of development projects in some of these beneficiary communities have come to a standstill. The uncertainty over the timing of disbursements makes it difficult for communities to plan development activities with any confidence. He said, "What is more worrying is the role of Parliament in all this because they passed the law mandating that certain percentages of mineral royalties be disbursed to mining host communities."
Parliament Must Act to Strengthen Transparency and Accountability
Dr. Manteaw said Parliament should ensure that information on delayed payments, including the institutions responsible and the amounts outstanding, was made public. This, he said, would strengthen transparency and accountability in the sector. He added that Parliament should summon state agencies to answer for the delays in disbursing mineral royalties.
The MSG's call comes at a time when reforms to the mineral royalty regime have improved the management of extractive revenues. Patrick Nomo, Co-Chair of the GHEITI Multi-Stakeholder Group and Chief Director at the Ministry of Finance, said in a speech read on his behalf that GHEITI advocacy had contributed to reforms, including changes to the mineral royalty regime and the institutionalisation of subnational royalty transfers.
Revenue Leakages and Weak Inter-Institutional Coordination Remain Challenges
However, Mr. Nomo said revenue leakages and weak inter-institutional coordination continued to constrain the sector's contribution to national and local development. He called for stronger institutional collaboration and improved data management to enhance transparency and ensure that resource revenues translated into tangible benefits for mining communities. He reaffirmed the government's commitment to using evidence generated through GHEITI to inform policy reforms and strengthen accountability in the extractive sector.
Under the Minerals Development Fund Act, mineral royalties are distributed through a statutory formula. According to the Act, district assemblies receive 55 percent of the allocation to local government, mining-affected communities receive 25 percent, and traditional councils receive 20 percent. Despite these provisions, the delays in disbursing mineral royalties have stalled development projects in mining host communities.
What's Next
The call by the MSG for Parliament to take action on the delays in disbursing mineral royalties is timely. The government's commitment to using evidence generated through GHEITI to inform policy reforms and strengthen accountability in the extractive sector is a welcome development. However, the challenges of revenue leakages and weak inter-institutional coordination remain and must be addressed to ensure that resource revenues translate into tangible benefits for mining communities.
Source: Joy Online
