“For my mouth will speak the truth; wickedness is an abomination to my lips” (Proverbs 8:7). This biblical passage encourages all of us to speak the truth, a principle that guides my reflection on national issues.
In our efforts to reshape Ghana, it’s essential to approach debates with a critical mindset. This submission on the history of bauxite in Ghana stems from an article by Mr. Martin Kpebu Esq., who alleged corruption and conflicts of interest in the sale of an 80% stake in Ghana Bauxite Company Ltd (GBC) to Ofori Poku Company Ltd.
He called for a forensic audit.
As a former Army officer with extensive experience in the mining industry and security risk management, I felt compelled to investigate this matter further. My findings will support the “Better Ghana” agenda under President Mahama.
This historical exploration of bauxite in Ghana dates back to 1921, during the Guggisburg era, when bauxite was first discovered. General Sir Frederick Guggisburg, a key figure in Ghana’s development, envisioned infrastructure improvements, including the Takoradi Harbour and a railway extension to Awaso for bauxite transportation.
President Nkrumah continued this vision, advancing the economy and infrastructure of Ghana. This history must be acknowledged and appreciated in our efforts to reset Ghana.
Bauxite, first discovered in Gold Coast in 1921 by General Guggisburg’s Geological Department, became a cornerstone of Ghana’s mining industry.
The country has significant bauxite reserves, with Awaso, Nyinahin, and Kyebi collectively holding over 900 million metric tons. General Guggisburg’s vision for refining bauxite was integral to the creation of the Volta River Project, which included the development of hydroelectric power to support the aluminum industry.
By 1940, the British Aluminum Company began mining bauxite in Gold Coast, and subsequent feasibility studies led to the construction of the Volta Hydro Power Station. However, it was the Nkrumah regime that aimed to refine bauxite in Ghana rather than exporting raw materials.
Despite struggles to secure funding, Alcoa Corporation was brought in to help develop Ghana’s aluminum industry.
Over time, various Ghanaian governments, including those under President Nana Addo, have continued efforts to expand the aluminum sector, culminating in support for Ofori Poku Company Ltd.
Mr. Ofori Poku’s work is aligned with Ghana’s long-term industrialization vision and the historical efforts initiated by General Guggisburg and President Nkrumah. Ofori Poku has made significant contributions to Ghana’s 24-hour economy, and his efforts should be acknowledged rather than critiqued.
It’s essential to recognize the complexities of the mining industry, where the sale of companies often follows the “arm’s length” principle, ensuring market-driven valuations.
This was the case with the sale of GBC to Ofori Poku Company Ltd. The valuation process followed industry standards, and any issues with the transaction should not be attributed to Ofori Poku.
Bauxite is a vital resource governed by Ghana’s 1992 Constitution, requiring parliamentary ratification before mining rights are granted.
The bauxite trade has faced challenges over the years, from mismanagement under previous regimes to conflicts with foreign investors.
However, Ofori Poku Company Ltd has operated within the guidelines of Ghana’s mining policies, having been contracted by Bosai Minerals Group to handle mining operations since 2010.
In 2021, when Bosai Minerals Group sought to sell its 80% stake in GBC, the Ghanaian government declined the offer, citing concerns over the value.
The shares were ultimately sold to Ofori Poku Company Ltd, which was already involved in GBC’s operations.
The sale price, determined by Bosai Minerals, followed established industry practices.
Contrary to Mr. Kpebu’s assertions, the deal was conducted transparently and in accordance with global mining regulations.
The accusations of corruption and undervaluation are misguided, as the mining sector operates with a set of transparent rules and regulations, including those governing the sale of mining shares.
It is important to recognize that the issue of low valuations is not a fault of Ofori Poku but rather a historical pattern of undervaluation and underpricing of Ghana’s mineral resources, particularly during previous foreign-led operations.
These practices have resulted in significant losses for the country.
Ghana’s bauxite industry, particularly under the leadership of Ofori Poku, has the potential to transform the national economy.
The contribution of Mr. Ofori Poku and his company should be praised, as they are helping realize the vision for a 24-hour economy.
I urge President Mahama and Minister Gosse Tanoh to support Ofori Poku’s work, as it aligns with the goals of a prosperous and industrialized Ghana. Mr. Martin Kpebu’s concerns, while well-intentioned, overlook the realities of the mining sector and the substantial progress made by Ofori Poku Company Ltd.
In conclusion, the sale of GBC to Ofori Poku Company Ltd is not an act of corruption.
Instead, it is a strategic move that supports the country’s long-term industrialization and economic growth. Let’s celebrate the efforts of those working to build a better Ghana, including Ofori Poku, whose contributions deserve recognition and support.
Columnist: Major Mohammed Bogobiri (rtd)
