EOCO Launches Investigation into Alleged Fraud in Heath Goldfields’ Acquisition of Bogoso-Prestea Mine

The Economic and Organised Crime Office (EOCO) has officially initiated an investigation into alleged fraud surrounding the acquisition of the Bogoso-Prestea Mine by Heath Goldfields Ltd.

The mine, which was previously owned by Future Global Resources (FGR) and its affiliate company, Blue Gold International, was taken over by Heath Goldfields Ltd. in November 2024, sparking controversy and legal disputes.

FGR had acquired the Bogoso-Prestea Mines from Golden Star Resources in October 2020, but financial challenges led to the cessation of operations at the mine by December 2023.

According to the Ghana Mineworkers Union (GMWU), which represents workers at the site, the mine ceased operations due to an inability to meet financial obligations. The Volta River Authority (VRA) and GRIDCO reportedly cut power to the mine in response to FGR’s outstanding debts.

The government of Ghana, aiming to stabilise the situation and ensure the continued operation of the mine, approved the acquisition of the Bogoso-Prestea Mine by Heath Goldfields Ltd. in November 2024. Officials justified the decision by highlighting the need to revitalise the mine, secure employment for the workers, and avoid any environmental damage that could arise from a prolonged closure.

However, the legitimacy of the transaction has been questioned by FGR, which contends that the mine was wrongfully transferred to Heath Goldfields.

Future Global Resources (FGR) claims that it was in the process of securing legitimate ownership of the mine and was only weeks away from listing on the New York Stock Exchange when the acquisition was finalized. The company has raised concerns about the involvement of a Ghanaian shell company in the deal and is disputing the validity of the transaction.

FGR’s objections have led to the filing of a notice of dispute with the Ministry of Lands and Natural Resources, the Minerals Commission, and other relevant parties. The company is seeking an injunction to halt the transaction and prevent the transfer of ownership to Heath Goldfields Ltd.

Amid these disputes, the EOCO has stepped in to investigate the allegations of fraud in the acquisition process. The agency has requested documents related to the deal and has instructed the Minerals Commission to freeze the acquisition until the investigation is complete.

A letter dated December 23, 2024, from EOCO to the Minerals Commission directed the Commission’s Chief Executive Officer to provide all relevant documentation concerning the registration and transfer of ownership for the Bogoso-Prestea Mine to Heath Goldfields. EOCO cited Section 33 of the EOCO Act, 2010 (Act 804), which grants it the authority to suspend transactions under investigation.

Despite the ongoing legal disputes, the Ghana Mineworkers Union (GMWU) has publicly supported the government’s decision to approve the acquisition of the Bogoso-Prestea Mine by Heath Goldfields Ltd. The union expressed optimism that the new ownership would bring much-needed investment to the mine, revitalising its operations and ensuring the long-term sustainability of the facility.

In a statement, Abdul-Moomin Gbana, the General Secretary of Ghana Mineworkers Union (GMWU), praised the government’s efforts to secure the future of the mine and protect the jobs of the workers.

“The Ghana Mineworkers Union is now convinced that the Bogoso/Prestea Mines are in a good position to receive the needed capitalisation that will revamp the mines and reposition them on the path of growth and sustainability,” said Gbana.

The GMWU also strongly rejected FGR’s claims, arguing that they were part of a broader effort to undermine the government’s actions and disrupt the revitalisation process.

The union pointed to the financial struggles of FGR, including the fact that statutory payments owed to workers, such as Tier 1 and Tier 2 pension contributions and provident fund payments, have been in arrears since 2021.

The EOCO investigation is now the focal point of the dispute, with many stakeholders closely watching the agency’s actions. The investigation into the alleged fraud could result in significant legal consequences if any wrongdoing is identified in the acquisition process.

EOCO’s letter to the Minerals Commission directs the Commission to provide detailed information on the registration and transfer process, as well as any other documentation related to the acquisition.

This includes confirming whether the necessary procedures were followed in the transfer of ownership to Heath Goldfields Ltd. and if the transaction adhered to Ghana’s mining laws and regulations.

Source: Graphiconline.com