There has been a missing link on what exactly government derives from natural resources when mined

Ghana joined the Extractive Industries Transparency Initiative (EITI) primarily to shed light on how much revenue is being generated in the extractive sector and how those resources are being used to bring about meaningful development in the lives of the citizens who are the rightful owners of the resource.

But over time there has been a missing link on what exactly government derives from the process of these natural resources when mined.

Speaking to Skyy News, CSOs Member of the multi-stakeholder group & Co-chair of Ghana EITI Dr Steve Manteaw believes it’s the responsibility of the policymakers to do a cost-benefit analysis of the various contracts to ascertain the real value.

He said, “The revenue that we get as the resource owner is derived on the basis of a physical regime which actually forms the basis of contract negotiation between Ghana and the contractors of the companies that come to extract the resource.”

“It is the responsibility of the policymakers that they will do a cost-benefit analysis in terms of the giveaway that we make in the contract negotiation and what comes back to us in a way of revenue, if what comes back to us is not commiserating to what we give away, then there will be a reason to reform.”

He also mentioned that it’s important we review our constitution to empower some institutions to deal with the misuse of funds from the extractive industry.

“The institutions that cause the change we desire are often headed by political appointees and I can not see any regulatory institution whose head is appointed by the president taken the Minister of Finance, Energy or Natural Resources where it is clear that a certain law has been violated.”

“Even YOKO, somethings they lack the boldness to investigate such cases because of their political connectedness, so it makes it difficult, this is why I support calls for a review of our constitution to water down the powers given to president and give more power to the technocratic institution.”

Source: Patrick Ennimil Arthur