Delayed mineral royalty payments undermining local development – GHEITI

The Ghana Extractive Industries Transparency Initiative (GHEITI) says delays in the disbursement of mineral royalties to mining host communities are undermining local economic development and causing some projects to stall.

The concern comes on the back of a six-month delay in the disbursement of mineral royalties to the Minerals Development Fund (MDF) for onward distribution to beneficiary mining host communities.
 

Co-Chair of GHEITI, Dr Steve Manteaw, said the situation is particularly concerning because the Minerals Development Fund (MDF) Act, 2016 was enacted to reduce government’s discretion in the distribution of mineral royalties to mining-affected communities.

According to him, the law clearly provides for portions of mineral royalties to be distributed to district assemblies, stools and traditional councils, yet the intended beneficiaries continue to experience delays in receiving the funds.

Dr Manteaw said this at a media engagement in Accra to disseminate findings from the 2023 GHEITI Report.

He said the delays are making it difficult for beneficiary assemblies and communities to plan and implement development projects with certainty.

“I’m aware a lot of development projects in some of these beneficiary communities have come to a standstill,” he said.

He added that the uncertainty surrounding the timing of disbursements “undermines planning and the delivery of local economic development” because communities cannot confidently incorporate the funds into their development plans.

Parliament urged to act

Dr Manteaw has consequently called on Parliament to intervene and demand answers from institutions responsible for the disbursement of the royalties.

He argued that Parliament has a responsibility to ensure compliance with the legislation it enacted to govern the distribution of mineral revenues.

“If this law is not being complied with, then it becomes the responsibility of Parliament to ensure compliance with the law it passed,” he said.

He urged Parliament to summon the relevant duty bearers to explain the prolonged delays and provide clarity on the amounts being disbursed, the percentage actually reaching beneficiary communities and where responsibility lies for any outstanding payments.

“Ghanaians need to know. Walk us through the payment amounts that are being received. What is the average percentage they are receiving? And help us also appreciate who is defaulting, really,” Dr Manteaw said.