Communities in mining areas across Ghana continue to demand water, schools, clinics, roads and other basic amenities from mining companies but the real problem, according to policy analyst and natural resource governance advocate Dr. Steve Manteaw, lies much closer to home.
Speaking at a roundtable on illicit gold in Accra, organised by UK-based charity Spotlight on Corruption, Dr. Manteaw said many district assemblies are failing to use their share of mineral royalties for the development projects they were designed to support. This failure, he said, has created widespread confusion, leaving communities wrongly directing their frustrations at mining companies instead of their local authorities.
Communities Expect Mining Companies to Act as Government
Dr. Manteaw explained that mining companies cannot be compelled to provide development projects beyond their legal obligations. Anything they do be they boreholes, school blocks, community centres is purely voluntary.
Due of this misunderstanding, he said, communities often turn to companies first whenever there is no water, no school, or poor sanitation.
“They see the company as the local government,” he said. “Meanwhile, a share of mineral royalty called the Mineral Development Fund (MDF) is being disbursed to the local government and they are misusing it.”
How Districts Misuse Their Mining Royalties
Dr. Manteaw offered a blunt assessment of how some assemblies in the Western Region use funds that are supposed to support community development.
Instead of investing in water systems, health facilities, feeder roads, or school infrastructure, some district assemblies spend their MDF allocations on funeral donations, canopy hiring, painting office buildings, and garbage collection.
“These funds are abused,” he said. “And when communities don’t get development, they go straight to the mining company. But the money is with the local authority.”
Redirecting Accountability
He urged civil society, the media, and community leaders to guide citizens to hold the right institutions accountable.
“Let’s be clear: the local government is the recipient of the mineral royalty. Let’s direct the communities — tell them their money is with the assembly. Let them put it to good use.”
Tackling Illicit Gold Flows
The commentary was part of discussions at the roundtable, which sought to consolidate recommendations for tackling illicit gold flows from Ghana. Participants from the media and civil society interrogated why the illicit gold trade continues to thrive despite government clampdowns, strengthened regulations, and global scrutiny.
For Dr. Manteaw, addressing illicit gold is inseparable from fixing governance failures at the local level. Mismanagement of mineral revenues not only erodes trust but also fuels resentment, leaving mining companies blamed for shortcomings that rightfully belong to district authorities.
His call was clear: fixing Ghana’s mining governance requires turning the spotlight not only on illegal miners and smugglers, but also on the public institutions entrusted with the resources meant to transform mining communities.
