Ghana's Law to promote equitable distribution of resources proposed

Government has been asked to institute a Mineral Revenue Management law to ensure accountability, transparency and equitable distribution of the country’s resources. 
 

Participants drawn from the Civil Society Organisations, the Mineral Commission, Community members, the Trade Union Congress, traditional authorities, the Media and opinion leaders made the proposal for the establishment of the Mineral Revenue Management law to promote equitable distribution of resources.

They said this at a consultative forum held in Bolgatanga in the Upper East Region and was organised by the Africa Centre for Energy Policy, IBIS Ghana, and facilitated by Northern Patriots in Research and Advocacy (NORPRA).

It was aimed at seeking inputs and advising on policy framework and legislation to be passed to regulate the management of revenue accrued from mineral resources such as gold and bauxite.

Participants argued that just like the oil sector which has the Petroleum Management Law, there is also need for a Mineral Revenue Management Law to ensure transparent management of mineral resources such as gold and bauxite.

They explained that the government must be required to spend the annual budget allocation on capital infrastructure, and the priority areas be limited to projects that have social and economic multiplier effects on development of the country -- such as education, health, agriculture, and road and rail infrastructure.

Dr. Mohammed Amin, the Executive Secretary of Africa Centre for Energy Policy, said a lot of countries, including Botswana and Brazil, spend a chunk of the revenue generated from their mineral resources on education -- and this has led to the greater development of those countries.

He indicated that in Ghana a lot of the decisions on mining are governed by administrative fiat -- including management of the revenue that accrues to the state, which explains why after decades of mining it is very difficult for the country to point out any positive impact of mining, particularly in mining communities.

“Mineral revenues have been used for consumption rather than investments, Public financial management is poor and this makes it difficult to track mineral revenues and development projects funded with the revenues. Transparency in the management of mineral revenues is limited to the Extractive Industries Transparency Initiative (EITI) process.

“If government listened to the proposals and implemented them, it would help address some of the major challenges in the mining sector and help improve the people’s livelihood,” Dr. Amin said.

Mr. Bismark Adongo Ayorogo, The President of NORPRA, indicated that his outfit with support from other partners will continue to advocate ensuring government adopts the proposals to bring about the needed change to help grow the extractive sector.