…..Awarded office complex project to its landlord through restrictive tender
The Herald’s investigation into significant governance lapses and potential financial impropriety at the state-owned Minerals Income and Investment Fund (MIIF), has revealed that its management awarded a US$41 million contract for its new head office to its landlord, Goldkey Properties Limited.
Goldkey Properties, owned by Kweku Ofosu Bediako, is the same company behind the controversial US$250 million Bank Square— the new Bank of Ghana office complex near the Greater Accra Regional Hospital.
MIIF, has been renting office space from Goldkey Properties for GHC3 million annually, and the award for the construction of the 10-floor MIIF office complex at the price of US$41 million to the same company, has sparked speculation of insider trading and conflict of interest.
But Mr Bediako, responding to The Herald, insisted that the contract was awarded in full compliance with Ghana’s procurement laws.
Documents reviewed by The Herald indicate that, both MIIF and Goldkey Properties are located in the same building, “Cannon House.” Correspondence between the two entities lists virtually the same address, reinforcing concerns about potential conflicts of interest.
One of the documents directed that, “Any notice or communication required or permitted to be delivered or given pursuant to this Notice of Acceptance of Tender shall be addressed as follows:
Minerals Income Investment Fund
The Chief Executive Officer
Cannon House, 1st Floor
Tel: 0302 750 660
1 Rangoon Lane
Cantonments, Accra”.
While correspondences from MIIF to Goldkey Properties were addressed;
The Managing Director
GoldKey Properties Ltd
6th Floor, Cannon House
No, 4 Rangoon Lane
Cantonments – Accra
Tender documents show that Goldkey Properties won the contract with the lowest bid of $40,901,375.27, ahead of competitors Imperial Homes ($44,033,505.75) and Justmoh Construction Limited, which was disqualified at the preliminary stage.
However, as is often the case with these companies, particularly Godkey Properties, this might not be the final cost of the project. As happened in the case of the construction of the Bank of Ghana office, the agreed price could be varied and outrageously bloated by the end of construction, and the handing over of the building by the contractor.
For instance, the Bank of Ghana project constructed by the same company Godkey Properties faced criticism for escalating costs, jumping from US$120 million to US$250 million with 20 floors less, after a fierce contest with Ghanaian-Italian construction company; De Simone Limited.
Originally budgeted at US$81.8 million, The Bank Square project’s cost, has ballooned to an estimated US$250 million. The project’s rapid escalation—from US$81.8 million to US$121 million within eight months, to over US$250 million, prompting serious questions.
The Herald’s findings reveal a flagrant disregard for authority and transitional directives from the team of President John Dramani Mahama during the January 2025 government handover from the Akufo-Addo administration.
Under the leadership of Edward Nana Yaw Koranteng, the immediate past Chief Executive Officer (CEO), MIIF disbursed over US$6 million to Goldkey Properties Ltd on January 6, 2025—just hours before the Akufo-Addo administration handed over power to President Mahama.
Portions of the contract documents sighted by The Herald mentioned that “Advance Mobilization Pursuant to the terms of payment herein, the Fund shall pay to the Contractor an amount of Six Million, One Hundred and Thirty-Five Thousand, Two Hundred and Six US Dollars, Twenty-Nine Cents (USD6,135,206.29) equal to fifteen percent (15%) of the Contract Price (the Advance Payment)”.
Other detailed reports sighted by The Herald showed that, Goldkey Properties offered the lowest price of US$40, 901, 375.27 – Forty Million, Nine Hundred and One Thousand, Three Hundred and Seventy- Five US Dollars and Twenty –Seven Cents, – amongst three shortlisted companies namely Imperial Homes quoted US$44,033,505.75, Justmoh Construction Limited – Disqualified at Preliminary Stage, which the MIIF eventually decided on.
Messrs. Multilead Limited, Messrs. Project Direct and Messrs. Redwood Estate Develop Company Limited, were other companies which took part in the tender.
Despite a directive from the Mahama transition team advising against last-minute financial transactions, MIIF expedited the payment for its head office, raising concerns about transparency and intent as happened in the case of the BoG office building project.
Insiders revealed that the MIIF management rushed the process, fearing the new government might halt the project.
The $41 million project involves constructing a 10-storey office complex, partly to house MIIF’s operations and partly to generate rental income. However, the site of the building remains undisclosed. While the facility is designed to accommodate MIIF’s 45-member staff, questions linger about its scale and the necessity for such an expensive undertaking.
Kweku Bediako, responding to The Herald, maintained that Goldkey Properties acted in full compliance with due process, and detailed the timeline of events, beginning with pre-qualification in May 2023 and culminating in the signing of the contract on November 6, 2024.
He said Goldkey Properties emerged as the successful bidder with a tender sum of $40,901,375.27, beating competitors like Imperial Homes ($44,033,505.57) and Justmoh Construction ($48,650,635.90). However, MIIF documents available to The Herald show that Justmoh Construction was disqualified.
Mr Bediako, confirmed that the management of MIIF had part-paid his company US$6 million and mentioned the Ridge area near the opposite Pharmacy Council.
A 5th September 2024 letter by MIIF mentioned that, “The Minerals Income Investment Fund (MllF or the Fund) refers to the Tender dated 5th June, 2024 (the Tender) submitted by Goldkey Properties Ltd (the Contractor) in connection with the Invitation for Tender dated 10th April, 2024 for the Design and Construction of MIIF Head Office Building (IFT NO. GR/MIIF/K/002/2023) (the Works)”.
The MIIF letter was entitled, “Notice of Acceptance of Tender – Design and Construction of MIIF Head Office Building (DESIGN – BUILD IFT NO. GR/MIIF/WK/002/2023)” and dated 5th September 2024, referred a Tender dated 5th June, 2024 as “submitted by Goldkey Properties Ltd (the Contractor) in connection with the Invitation for Tender dated 10th April, 2024 for the Design and Construction of MIIF Head Office Building (IFT NO. GR/MIIF/K/002/2023) (the Works)”.
The Herald also sighted a letter dated August 25, 2023 by the Public Procurement Authority (PPA) which mentioned that “At the 44th Board Meeting of the 5th PPA Board held on Thursday, 17t August 2023, the Board granted approval to Minerals Income Investment Fund (MIIF) to use the Restricted Tendering Method, in line with Section 38 (1) (b) of Act 663 as amended, to invite the underlisted companies to tender for the construction of MIIF Head Office Building at an estimated Total Cost of USD42,000,000.00”.
Established by the Minerals Income Investment Fund Act 2018, (Act 978) as amended by the MIIF Act, 2020 (Act 1024).
Maximization of the value of income due to the country from the mineral wealth of the country, monetization of the income in a beneficial, responsible, transparent, accountable, and sustainable manner; and the development and implementation of measures to reduce the budgetary exposure to mineral income fluctuations.
MIIF commenced the operationalization of its Commodities Trade Programme in August 2023. The Programme is aimed at: Integrating the value chain of gold, Supporting the Ghanaian economy’s forex market stabilization with US$ from the proceeds of the Gold Trade, building gold reserves as underlying assets for the MIIF-ETF Program, and optimizing investment returns for the Fund.
It is believed that some MIIFFF Trade has attracted total inflows of US$1.02 billion into the economy between August 2023 and September 2024, from the export of 449,554.99 ounces of gold doré.
Some GH¢2.2 billion, the equivalent of US$150. 6 million dollars was dished out to aggregators by MIIF to do gold trading against the law, and this has caused the state to incur a massive financial loss.
There is yet another loss, the use of a whopping GH¢240 million on Astro tuff and a Mining Museum from some of the return on investments. Its construction appears to be a deliberate effort to blow money senselessly, and the bulk of the funds were mismanaged.
In November 2024, a colossal sum of GH¢84.8 million, the equivalent of US$5 million was allegedly spent on an initiative which was to purchase mining equipment dubbed, “Mining Support for “Small Scale Incubation Projects”. However, the whereabouts of the equipment are unknown, it is not clear, if they were bought and who the beneficiaries are.
Over GHC1. 4 billion the equivalent of US$82 million was spent by the management and the board had also purchased equity shares in companies, including Asante Gold Corporation, Injaro Ventures Capital Fund, Electrochem Ghana Limited owned by McDan, as well as Atlantic Lithium.
Those mentioned to be in the known of the Sledge transaction, include the Legal manager of the MIIF, Nana Serwaa Owusu, Daniel Imadi, the head of legal and compliance, the Chief Investment Officer, Bubune Sorkpor and the CEO himself.
Has also claimed some successes, saying it had provided foreign exchange trade amounting to US$675.73 million as of the end of September 2024. The Trade Programme has provided a stable source of dollars to the BDCs for oil purchases and stable fuel prices to Ghanaian consumers.
The Mahama transition team, through a statement by Felix Kwakye Ofosu, had explicitly warned against any last-minute financial commitments by outgoing officials. However, MIIF’s actions raise serious questions about adherence to governance protocols and the motives behind the rushed payment.
With mounting concerns about transparency and accountability, the new administration may probe the transaction further to determine whether due process was followed and if public funds were prudently utilized.
