The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has urged the government to carefully apply lessons from Ghana’s former Gold-for-Oil program as the Ghana Gold Board (GoldBod) continues to expand its operations.
According to Mr Amoah, GoldBod’s trading structure must be designed in a way that protects public funds and prevents potential losses from being shifted onto the Bank of Ghana. He said issues such as fluctuations in gold and oil prices, foreign exchange movements and the source of financing must be properly considered.
His comments come amid a growing controversy over GoldBod’s financial performance. Minority Leader Alexander Afenyo-Markin has alleged that GoldBod’s operations have resulted in losses of about US$1.7 billion, a claim that GoldBod Chief Executive Officer Sammy Gyamfi has rejected, insisting that the institution has recorded profits.
Mr Amoah said the previous Gold-for-Oil arrangement demonstrated the dangers of conducting commodity transactions without adequate protection against price volatility. He explained that if the price of gold falls while the price of oil rises, more gold could be required to obtain the same quantity of petroleum products, potentially creating losses for the institution providing the financing.
He therefore wants GoldBod to demonstrate that its revised trading model can operate sustainably without relying excessively on the Bank of Ghana. Mr Amoah said the important test would be whether GoldBod can finance its gold purchases from its own balance sheet, operate efficiently and still declare genuine profits at the end of its financial year.
Duncan Amoah also called for greater transparency over GoldBod’s financing arrangements, including the source of funds and exchange rates used for its transactions. He argued that the current debate should not become another political confrontation but should instead encourage authorities to identify weaknesses in the model and correct them before they create a larger financial burden for the country.
