The Progressive Alliance for Ghana (PAG) has formally called for the immediate and complete withdrawal of the Barari DV–Ghana lithium agreement currently before the Parliamentary Select Committee, claiming the deal follows a pattern of poor resource management that has cost the nation over $80 billion in lost revenue over the last decade.
In a submission delivered by the party’s leader, John Kpikpi, the PAG argued that the proposed contract would hand an unacceptable 87 percent of Ghana’s lithium wealth to a foreign investor, amounting to a severe dereliction of the government’s duty as the custodian of national resources.
Kpikpi grounded the party’s opposition in the 1992 Constitution, which explicitly vests all mineral resources in the Republic of Ghana, held by the President in trust for the people.
”The framers of the 1992 Constitution agreed that all mineral resources in their natural state are the property of the Republic of Ghana,” Kpikpi stated. He argued that successive governments have failed in their role as “stewards,” instead viewing their mandate as a “carte blanche” to enrich themselves while allowing foreign entities to take the maximum gains.
The 87:13 Ratio of Loss
To illustrate the alleged financial loss, the PAG leader employed a powerful analogy:
He compared the government to a trustee, Mensah, who sells a family inheritance for GHC12 million but returns only 13% of the value to the 12 rightful owners (the 35 million Ghanaians), claiming the foreign agent (investor) charged an 87% commission.
”The Anaga Family story is exactly like what has been happening to all the Natural Resources that God has placed in our soil for the last 33 years of the 4th Republic,” Kpikpi asserted.
He presented a summary table, compiled by the PAG, which estimates that the cumulative government share across four key sectors which are gold, oil, diamond, and bauxite, averaged only 11.5% over the last ten years, leading to a total estimated loss to Ghana of over $80 billion. This practice was branded as Bad Stewardship Management (BSM).
Kpikpi argued that the leakage of $80 billion has tangible, negative consequences for the nation, representing tens of thousands of kilometers of unbuilt roads and millions of uncreated jobs.
To reverse the trend, the PAG proposed a radical shift in the negotiation philosophy for the Barari DV lithium agreement:
Valuation as Equity: The value of the lithium in the ground (estimated by the party to be up to $90 billion) must be computed and treated as Ghana’s non-cash equity contribution to the venture.
Majority Ghanaian Ownership: This valuation should be the starting point for negotiations, immediately giving Ghana 90% ownership, with the foreign partner’s capital investment representing their 10% share.
Hiring, Not Surrendering: Kpikpi maintained that Ghana does not need to surrender shares to acquire expertise or equipment. The country can employ foreign experts on salary and rent or loan necessary equipment, thereby retaining full control over the wealth generated.
”That is what it should be like, because 10 billion compared with the value of the resource, that should be the starting point. And from that moment, we call the shots,” Kpikpi concluded.
Story By: Eugenia Ewoenam Osei
