Dr. Kenneth Ashigbey Proposes New "Minerals Revenue Management Act" to Ensure Host Communities Benefit and Spur National Development

The bombshell allegation was made by Ing. Dr. Kenneth Ashigbey, who stated that the current structure of the Minerals Development Fund (MDF) may be in direct breach of the constitution due to its relationship with the Office of the Administrator of Stool Lands.

Dr. Ashigbey disclosed that this critical legal perspective emerged from high-level discussions with Collins Dauda, the experienced Chairman of Parliament’s Select Committee on Lands and Natural Resources and a former Minister.“He tells me, and I think I agree with him, that there are some myths and thatthe  Minerals Development Fund, because of the fact that there’s a constitutional creation of the stool lands administrator, there’s some constitutional breach,” Dr. Ashigbey stated, speaking at the end of a two-day tour of mining companies in the Tarkwa Nsuaem municipality.

This constitutional concern, according to Dr. Ashigbey, is the catalyst for the Chamber’s push for a comprehensive overhaul of how mineral royalties are collected and distributed. The goal is twofold: to ensure legality and to guarantee that host communities see tangible benefits from the resources extracted from their land.

The proposed solution is a more transparent and deliberate system. Dr. Ashigbey suggested that royalties could be collected by the Ghana Revenue Authority (GRA) on behalf of the Stool Lands Administrator, followed by a clear, undisputed formula for apportioning the funds.

“We want to make sure that the resources are spread out as much as possible, but you also would want to make sure that the host communities also get the benefit out of it,” he emphasized.

He pointed to the existing corporate social investments by mining companies—which totalled $28 million last year—as a foundation that could be massively amplified with a more efficient royalty system. By matching such investments with a direct stream of royalty benefits, mining towns could begin to rival famed mining hubs like Obuasi and Johannesburg in terms of development.

“When we give the examples of the Damang road, for example, where you give the examples of the TNA stadium that has been built, then you could be able to do a lot more of these projects,” Dr. Ashigbey said.Looking beyond the immediate royalty issue, the Chamber is advocating for a landmark legislative change: the creation of a Minerals Revenue Management Act, modelled on the successful Petroleum Revenue Management Act (PRMA).

This new law would bring much-needed rigour and strategic planning to the use of mineral revenues. Dr. Ashigbey envisions it mandating the allocation of funds for specific national infrastructure projects, such as railway development, which would in turn spur broader economic growth.

“So that then you can be very deliberate in how you use some of these resources… that would engender other businesses coming up and another growth happens. So that's also something that really is important to do,” he concluded.

The Chamber now hopes to garner support from both Parliament’s Select Committee and the Executive branch to turn this proposal into law, potentially reshaping the landscape of mineral revenue management and community development in Ghana for generations to come.

Source: Nana Esi Brew Monney

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