Ghanaian President faces accusations of favouring brother’s company in gold mining deals

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Ghanaian President John Mahama has come under scrutiny over allegations that his administration favoured Engineers & Planners (E&P), a mining and construction firm owned by his younger brother, Ibrahim Mahama, in the allocation of major gold mining assets.

The controversy intensified in April when E&P officially assumed control of the Damang concession, one of Ghana’s largest gold mining operations, previously managed by Gold Fields Ghana, a Johannesburg-based mining company.

Reports indicate that although the Ghanaian government received bids from several local investors interested in acquiring the mine, E&P was ultimately selected ahead of competing firms.

Opposition lawmakers subsequently petitioned the Commission on Human Rights and Administrative Justice (CHRAJ), alleging a conflict of interest and questioning the circumstances that led to E&P’s emergence as the preferred bidder.

In response, Ghana’s Minerals Commission dismissed the allegations, maintaining that the process was transparent and conducted in line with established mining regulations.

The commission explained that E&P had been providing mining services at the Damang mine since 2004 and began pursuing ownership of the concession in 2023, before the current administration took office.

Gold Fields has also challenged the termination of its lease, describing the decision as unfair and initiating arbitration proceedings over the dispute.

Beyond the Damang mine, E&P is currently involved in a legal dispute with Azumah Resources, an Australian-Ghanaian mining company, and INIHC, a London-based mining investor and British subsidiary of Singapore’s Ibaera Capital, over the Black Volta gold project.

The disagreement, which is now before the International Chamber of Commerce (ICC), revolves around competing claims to ownership and development rights over one of Ghana’s largest gold mining projects and one of the most significant gold assets on the African continent.

As Africa’s largest gold producer and one of the world’s top ten producers, Ghana remains a major destination for mining investment.

Last year, the Mahama administration introduced reforms aimed at increasing local participation in the gold mining sector. The measures included reducing the duration of mining licences for foreign companies and requiring a portion of mineral sales to be channelled into local development projects.

Critics argue that E&P has so far been the main beneficiary of these regulatory changes, a claim the Mahama administration has denied.

Following E&P’s takeover of the Damang mine, Ibrahim Mahama pledged substantial investments in the host community, including the construction of an airport, two hospitals and sporting facilities.