Fidelity Bank Seizes MIIF’s $25 Million Amid Allegations of Financial Mismanagement

The Minerals Income and Investment Fund (MIIF) faces mounting scrutiny as Fidelity Bank has seized $25 million of its funds, highlighting alleged financial mismanagement under its former Chief Executive Officer, Edward Nana Yaw Koranteng. This action stems from MIIF underwriting an overdraft facility for Goldridge Limited, a company owned by Dr. Sledge Nana Yaw Duodu, which defaulted on repayment obligations.

Goldridge Limited, known for gold aggregation, reportedly received $94 million from MIIF for a gold trading initiative. However, the transaction resulted in losses as the expected foreign currency proceeds were not deposited into MIIF’s accounts. The company now owes MIIF an estimated $119 million.

This financial misstep has raised questions about MIIF’s operations, established under the Minerals Income Investment Fund Act, 2018 (Act 978), to maximize the value of Ghana’s mineral royalties. Critics point to systemic lapses, including alleged violations in MIIF’s Commodities Trading Programme and questionable investments in companies such as Asante Gold Corporation and Electrochem Ghana Limited.

The controversy deepens as MIIF reportedly diverted funds meant for mineral wealth management into projects like AstroTurf pitches and a mining museum, amounting to over GHC2.4 billion. Additionally, $5 million allocated for mining equipment under a small-scale initiative remains unaccounted for, raising concerns about transparency and accountability.

The fund’s leadership, including Legal Manager Nana Serwaa Owusu and Head of Legal and Compliance Daniel Imadi, are under scrutiny for their roles in these decisions. Public discontent is further fueled by previous controversies involving MIIF’s management of the Agyapa Mineral Royalty Limited, which faced allegations of conflict of interest.

Amid the scandals, MIIF has defended its operations, claiming successes such as generating $1.02 billion in gold exports and stabilizing Ghana’s forex market. However, these achievements have been overshadowed by reports of missing funds, mismanaged investments, and allegations of impropriety.

As calls for accountability grow louder, the unfolding saga underscores the urgent need for transparency in managing Ghana’s mineral wealth. Further investigations into MIIF’s financial dealings are expected in the coming days.