PAC praises MIIF for bold institutional reforms and improved financial compliance

The Public Accounts Committee (PAC) has applauded the Minerals Income Investment Fund (MIIF) for what it described as bold and effective institutional reforms aimed at strengthening internal controls and preventing procurement and financial management breaches.

At its sitting on Wednesday, October 29, to review the Auditor-General’s Report on MIIF for the year ending December 31, 2024, MIIF Chief Executive Officer Mrs Justina Nelson outlined a series of corrective measures and structural improvements being implemented by the Fund.

The reforms include the establishment of a Compliance Unit and a Risk Department, the discontinuation of restricted procurement for high-value contracts, the halting of direct gold trading, and the enforcement of stronger corporate governance procedures.

Addressing infractions cited in the 2024 Audit Report, Mrs Nelson openly acknowledged past breaches, particularly a US$3.8 million advance payment to Commodity Monitor Limited for mercury-free gold processing equipment, which exceeded the statutory 15% threshold under the Public Financial Management (PFM) Regulations. She clarified that the transaction occurred before her tenure and assured the Committee that the equipment had since been fully delivered and was operational.

She also confirmed that MIIF’s gold trading pilot programme, launched in 2023 with three aggregators and later expanded to five, generating approximately GHS8 million, had been terminated following the establishment of the Gold Board, allowing MIIF to remain fully within its legal mandate.

Regarding outstanding royalties amounting to GHS29 million, Mrs Nelson reported that all funds had been recovered. Additionally, previously unaccounted payments totalling GHS39,043 had been reconciled, with supporting documents submitted to the Auditor-General.

She further stated that the Fund had ended the use of restricted procurement for major contracts following amendments to the PFM Act, and now submits all procurement plans to the Ministry of Finance for prior approval.

Responding to rumours circulating on social media about internal tensions, Mrs Nelson dismissed the claims as false and emphasised that her relationship with staff remained professional, respectful, and collaborative.

PAC Chairperson, Madam Abena Osei Asare, commended Mrs Nelson for her competence, transparency, and detailed understanding of financial regulations.

“I’m not commending you because you are a woman but because you’re competent,” she said. “You came well prepared. You knew what had been done, what had not been done, and what was beyond your capacity.”

Committee members urged MIIF to sustain its reform-driven leadership and continue strengthening systems to ensure effective management of Ghana’s mineral revenues.

Present at the meeting were key members of the MIIF management team, including Chief Finance Officer Mr David Awuah Mensah, Director of Internal Audit Mr Martin Adjei, Head of Procurement Ms Theresa Gyasi Antwi, and Head of Legal Ms Louisa Quaicoe.