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Fidelity Bank has refuted allegations that it seized US$25 million from the Minerals Income and Investment Fund (MIIF), a state entity responsible for managing Ghana’s mineral royalties. In a statement issued on January 23, 2025, the bank described the claims as baseless and a misrepresentation of its dealings with MIIF.
“Fidelity Bank has not seized any funds from MIIF. The transaction in question pertains to a foreign exchange pre-settlement agreement,” the statement read.
The allegations, which surfaced in recent reports, tied Fidelity Bank to financial irregularities involving MIIF. However, the bank clarified that the transaction under scrutiny was a standard arrangement designed to address MIIF’s operational requirements.
According to the statement, Fidelity Bank provided advance cedis to MIIF with the understanding that MIIF would repay the equivalent amount in foreign currency within an agreed timeframe. While MIIF reportedly faced delays in meeting the repayment deadlines, the bank noted that the issue was resolved through a mutually agreed remediation process.
“On specific occasions, MIIF did not meet the agreed timelines. However, a remediation process was agreed upon, and the outstanding amounts were fully settled by December 2024,” Fidelity Bank stated, emphasizing that all transactions adhered to regulatory standards and contractual agreements.
Allegations of Financial Mismanagement at MIIF
The controversy comes amid broader allegations of financial mismanagement at MIIF under the leadership of its former CEO, Edward Nana Yaw Koranteng, who was recently dismissed. Reports claim that MIIF provided an overdraft facility to Goldridge Limited, a gold aggregator owned by Dr. Sledge Nana Yaw Duodu. When Goldridge defaulted on its obligations, it was alleged that Fidelity Bank seized US$25 million from MIIF in November 2024.
In addition to the overdraft facility, MIIF is reported to have loaned US$94 million to Goldridge for gold trading activities, which led to significant losses as foreign currency proceeds failed to return to MIIF’s accounts.
Further scrutiny has been directed at MIIF over the use of GH¢2.2 billion disbursed for gold aggregation and projects such as AstroTurf pitches, a mining museum, and a small-scale mining initiative. Critics have questioned the fund’s transparency, particularly given that MIIF reportedly generated US$1.02 billion in gold exports between August 2023 and September 2024.
Fidelity Bank’s Commitment to Transparency
Fidelity Bank reiterated its commitment to fostering transparent and sustainable partnerships. The bank also reaffirmed its support for the Gold for Forex programme, a government initiative aimed at stabilizing Ghana’s foreign exchange market by trading gold to generate foreign currency.
“We continue to support the Gold for Forex programme’s objectives and maintain our commitment to transparency and regulatory compliance,” the statement concluded.
The Gold for Forex programme has been a cornerstone of Ghana’s efforts to reduce reliance on external reserves for imports, leveraging the country’s gold resources to address foreign exchange challenges.
As the dust settles on the allegations, Fidelity Bank remains resolute in its defence, emphasizing its adherence to ethical practices and regulatory compliance in all financial dealings.
SOURCE FEDELITY BANK
