The Economic Community of West African States (ECOWAS) Court of Justice dismissed the lawsuit filed by the Ghana Integrity Initiative and Transparency International Ghana against the Agyapa Royalties deal.

This means that the court would not force Ghana's government to halt the selling of the country's gold royalties through the Agyapa contract.

During a virtual hearing on July 11, 2023, the court dismissed all of the plaintiff's reliefs, Transparency International and its subsidiary, the Ghana Integrity Initiative.

The court has yet to explain its decision.

Transparency International, Ghana Integrity Initiative, and Ghana Anti-Corruption Coalition filed a complaint with the ECOWAS court against the Ghanaian government over the Agyapa agreement.

Below are the reliefs Transparency International was seeking:

1. A declaration that the Defendant’s actions towards entering into a relationship agreement with Minerals Income Investment Fund and Agyapa Royalties Limited in respect of transactions surrendering the sovereignty of Ghana over its gold mineral resources in perpetuity constitute an interference with the right guaranteed under Article 21(1) of the African Charter on Human and Peoples Rights as well as violation of Articles 2(1) And (2), 3(1), 16(1) And 17(3) of The Revised African Convention On The Conservation Of Nature And Natural Resources (revised Maputo Convention).

2. An order restraining Defendant from implementing the Agyapa deal, and cancelling/terminating the already existing contracts.

3. An order mandating the Defendant, where it desires to raise immediate funds from gold royalties, to restart the planning, impact assessment, consultations and other preparations in line with its international human rights law obligations.

4. An order mandating the Defendant to undertake a thorough and impartial investigation into the alleged corruption offences and ensure that any alleged perpetrators are brought to justice and held accountable for any violations.

5. An order mandating Defendant to immediately review its existing relevant national laws and policies to:

(a). Provide for adequate and effective safeguards against violation of the Right to Free Disposal of Wealth and Natural Resources by public officials and public bodies.

(b). Follow Revised ECOWAS Treaty’s fundamental principles enshrined in Article 4 paragraphs g) and h) and ensure compliance with its Article 31.

(c). Ensure that any entity with the function of sovereign wealth fund complies with the best international standards, such as the Santiago Principles.

6. Other consequential order (s) as this honourable court may deem fit to grant in the circumstance.

About the Agyapa Royalties deal:

The agreement began in June 2018, when Parliament established the Minerals Income Investment Fund (Act 2018) to handle equity holdings in mining firms and receive royalties on behalf of the Ghanaian government.

The Minerals Income Investment Fund is tasked with managing and investing the royalties and revenue it collects on behalf of Ghana in order to maximize returns.

To accomplish this, the statute authorizes the Fund to create Special Purpose Vehicles (SPVs) to appropriate these investments.

In July 2020, the government proposed a modification to the Act to ensure that the SPVs established by the Fund to handle investments have complete independence.

The Minerals Income Investment Fund established an offshore limited liability company known as Agyapa Royalties Limited (formerly Asaase Royalties Limited) in response to the change and the original requirements of the legislation.

The Agyapa Royalties Ltd is incorporated in the UK tax haven of Jersey. It has been incorporated in a tax haven to avoid the hefty tax costs linked with the returns that will flow to the state from the investments.

Agyapa Royalties Limited is an external corporation registered in Ghana.