AngloGold Ashanti Launches Trust Funds For Two Communities

AngloGold Ashanti has donated 12 buses and 140 computers to schools in Obuasi and Iduapriem as part the launch of the company’s Trust Funds for the two communities. The Trust Funds will support long-term sustainable development in the communities in which the company works, and is an ongoing investments in community and economic development projects aligned with local government plans and designed to leverage relationships with other partners or stakeholders. The Trust Funds will operate in the context of AGA’s broader sustainability program and be accountable to communities, government and AGA. Community facilitators will lead grassroots outreach to identify community priorities, develop proposals and make funding recommendations.

According to Fred Attakumah, Vice President Sustainability, AGA, Ghana, “The Trust Funds will make ongoing investments in community and economic development projects. Community development investments will support projects in areas including: social infrastructure, health, education, youth programs, arts, culture and heritage.” He further explained that “Economic development investments will support local small and medium sized enterprises through capacity building and facilitating access to finance, to create employment.” The Western Regional Minister, Hon Paul Evans Aidoo has lauded this bold initiative of the AGA. “I commend AngloGold Ashanti for their commitment to working closely with stakeholders. I am aware that the positive relationship that exists between AngloGold Ashanti Iduapriem Mine and its stakeholders has not happened without an intensive stakeholder engagement strategy on the part of the company. This is clearly a good practice which needs to be emulated,” he remarked. Investment proposals will be evaluated using a transparent and participatory process that focuses on three (3) criteria. These are: need - the extent to which the project addresses a pressing and strategic community need; impact - the extent to which the scope and clarity of the project has beneficial impact and contribution - the extent to which the community can show its own contribution to the project: in-kind, cash or other contributions. A monitoring and evaluation program will systematically assess each funded project. Results will be published in the Trust Fund annual reports. Each Trust Fund will have three (3) permanent management bodies. A board of directors, made up of 7 members in each location, will make investment and policy decisions. They are accountable for Trust Fund performance and ensuring that they benefit the people of Obuasi and Iduapriem, in consultation with steering committees. The steering committees, with 32 members in Obuasi and 23 members in Iduapriem, bridge local government, communities and the trust funds. Finally, secretariats, in each location, are administrative teams of 3-5 staff that support the boards and steering committees and facilitate interactions with the communities. Trust Funds at Obuasi and Iduapriem are required under the 2004 Stability Agreement with the Government of Ghana. Under the agreement, AGA contributes 1 percent of annual post-tax profits from Ghana operations. AGA has set aside this amount since the signing of the agreement, with accrued interest. Annual contributions are allocated to Obuasi and Iduapriem in proportion to the number of ounces produced at each site in that year.