Fidelity Bank has denied allegations that it seized US$25million from the Minerals Income and Investment Fund (MIIF), a state institution that manages national mineral royalties.
In a statement released on January 23, 2025, the bank clarified that the claims are unfounded and misrepresent the nature of its transactions 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 partly read.
The alleged seizure of funds surfaced in recent reports linking Fidelity Bank to financial controversies involving MIIF.
According to the bank, the transaction at the centre of these claims was part of a routine agreement designed to support MIIF’s operational needs.
Under the arrangement, Fidelity Bank advanced cedis to MIIF with an understanding that MIIF would settle the equivalent amount in foreign currency within a stipulated timeline.
While acknowledging that MIIF experienced delays in meeting its repayment deadlines, Fidelity Bank stated that these delays were 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,” the bank noted.
The statement stressed that all transactions were conducted within the agreed terms and in compliance with regulatory standards.
MIIF has faced allegations of financial mismanagement under the leadership of its dismissed CEO Edward Nana Yaw Koranteng, with reports claiming MIIF underwrote an overdraft facility for Goldridge Limited – a gold aggregator owned by Dr. Sledge Nana Yaw Duodu.
It is said that when Goldridge defaulted on repayment, Fidelity Bank allegedly seized US$25million from MIIF in November 2024.
Additionally, MIIF loaned US$94million to Goldridge for gold trading, which resulted in significant losses with foreign currency proceeds failing to return to MIIF’s accounts.
The reports continued by stating the fund has also faced scrutiny over GH¢2.2billion disbursed for gold aggregation and other expenditures – including AstroTurf pitches, a mining museum and a small-scale mining project – with unclear outcomes, as the fund is estimated to have generated US$1.02billion in gold exports between August 2023 and September 2024.
Fidelity Bank underscored its commitment to maintaining transparent partnerships and supporting economic initiatives aimed at addressing foreign exchange challenges.
As part of its broader role in Ghana’s financial ecosystem, Fidelity Bank reaffirmed its support for the Gold for Forex programme, an initiative aimed at stabilising the country’s foreign exchange market.
“We continue to support the Gold for Forex programme’s objectives and maintain our commitment to transparency and regulatory compliance,” the statement added.
The Gold for Forex programme, which involves the trade of gold to generate foreign currency, has been a key policy tool in efforts to reduce reliance on external reserves for imports.
