Finance Ministry justifies stability agreement with Goldfields-Ghana


Finance Ministry justifies stability agreement with Goldfields-Ghana

The Finance Ministry has justified its decision to sign a Stability Agreement withmining firm, Goldfields-Ghana.

Government through parliament last monthannounced its decision to allow Goldfields-Ghana to pay a fixed tax and royaltyrate for the next 11 years.

This decision has, however, not gone down well withsome civil society groups and even the committee that was established to reviewthe agreement granted mining firms like, Anglogold and Newmont-Ghana.

ButDeputy Finance Minister Ato Forson tells JOYBUSINESS there was no waygovernment could have declined the agreement.

"As soon as you set one precedent, in the case of Ghana, like Newmont, others doing similarinvestments will ask for similar equality. Failure to do it will mean they are going away andthat is why I said that in taxing petroleum or mineral resources in the extraction industry, youreally will have to look at what your sub-region is doing," Mr. Forsonsaid.

He explained that others are benchmarking and failureto do it will meanthat things will not be as they were which means taking an investment or a financial decision.

According to Mr. Forson, they are taking a decision that would benefit thecommunity as a whole and not necessarily to look at revenue but both.

"So you dont only lookat how much you get in terms of how much you are going to benefit, the impact on job, creation, the impact on growth, add them and then form an opinion. So if you are to dwell onone side you make a mistake," he said.

According to the committee that is reviewing the stability agreements, the onegiven to Goldfields, could result in the country losing about $26 millionannually.

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