Government owes Chiefs GHC120m royalties

The Government of Ghana has failed to pay royalties which have been in arrears to the tune of about GH¢120 million to chiefs in mining communities of the country.

The money is an accumulation of nine percent share of receipts by central government on behalf of beneficiary chiefs in the mining communities.

According to the Mining Act, communities are entitled to nine percent of total royalties paid to government but for some time now, the government had allegedly failed to pay traditional rulers and the various district assemblies their share of the royalties.

Ogyeahoho Yaw Gyebi II, Omanhene of Sefwi Anhwiaso, one of the biggest beneficiaries whose money government is keeping, revealed this at the Ghana Extractive Industries Transparency Initiative (GHEITI) 2014 report dissemination workshop in Takoradi.

The traditional ruler explained that the situation was adversely affecting the smooth running of the affected traditional areas.

“Nananom use part of the monies they collect as royalties to grant scholarships for brilliant but needy students in the mining companies and so where the money is delayed it affects the students”, he added.

The chief pointed out that the percentage of royalties given to the traditional areas and the district assemblies was not enough and indicated that the amount should be increased to 30 percent.

“In DR Congo, mining companies pay 35 percent of their revenue to chiefs as royalties and in Nigeria it’s 30. Unfortunately, even the nine percent in Ghana is not released on time and as I speak right now the government owes about GH¢120 million”.

He stated, “I am told government released GH¢4 million about two weeks ago. What can we do with that money?”

“It is stated clearly in the Mining Act that a certain percentage must go to chiefs and the district assemblies. I am therefore appealing to the Ministry of Finance to release the money.

The chief suggested that royalties meant for traditional leaders should be paid directly to the chiefs rather than government.

He accused multinationals operating in Ghana of promoting illegal mining by buying tailings from ‘galamsey’ operators whose activities had polluted water bodies and degraded farm lands.

In an address read on his behalf, the Minister of Lands and Natural Resources, noted that his outfit had adopted the aims of the Extractive Industries Transparency Initiative (EITI) to improve transparency and accountability in the management of revenues from natural resources.

He, however, mentioned that the ministry expected that the EITI would champion programmes that would digest the complex and intricate financial systems operated by some mining companies.