EOCO Investigates Alleged Fraud in Prestea-Bogoso Mine Acquisition by Heath Goldfields Ltd
The Economic and Organised Crime Office (EOCO) has launched an investigation into alleged fraud surrounding the acquisition of the Prestea-Bogoso Mine by Heath Goldfields Ltd, a local Ghanaian company, in November 2024.
The mine was previously owned by Future Global Resources (FGR), which acquired it from Golden Star Resources in 2020.
Background to the Acquisition
The Prestea-Bogoso Mine ceased operations in December 2023 due to reported financial challenges, including indebtedness to the Volta River Authority and GRIDCo, which led to a suspension of power supply. To address the mine’s challenges, the government approved its acquisition by Heath Goldfields Ltd in November 2024, citing the need to revamp the mine, protect jobs, restore economic activities, and mitigate environmental risks.
However, FGR has disputed the government’s decision, alleging irregularities in the transaction. The company, reportedly preparing to list on the New York Stock Exchange, claims its rights to the mine were unjustly terminated.
Allegations and EOCO’s Actions
One contentious issue is the incorporation of Heath Goldfields Ltd. The company was established on February 6, 2024, with a stated capital of GH¢10,000. Questions have been raised about its ability to undertake the acquisition and operate a mine of such scale.
Following allegations of fraud, EOCO directed the Minerals Commission to provide documentation related to the acquisition, citing its powers under Section 19 of the EOCO Act, 2010 (Act 804). The agency has also frozen the transaction pending the conclusion of investigations, as authorized by Section 33 of the Act.
Ghana Mine Workers Union’s Endorsement
Despite the controversies, the Ghana Mine Workers Union (GMWU) has commended the government for transferring the mine’s lease to Heath Goldfields Ltd. The union, in a statement signed by General Secretary Abdul-Moomin Gbana, expressed optimism that the new ownership would revamp the mine and ensure its sustainability.
The GMWU also dismissed claims by FGR, describing them as attempts to undermine the government’s efforts. The union highlighted that statutory payments, including pensions and provident fund contributions, have been in arrears since 2021 under FGR’s management, further justifying the need for change.
Next Steps
As EOCO proceeds with its investigation, the spotlight remains on the legitimacy of the acquisition process and the capacity of Heath Goldfields Ltd to deliver on its mandate. Meanwhile, stakeholders, including the GMWU, remain hopeful for a resolution that will secure the future of the Prestea-Bogoso Mine and its workers.
