Dr. Mohammed Amin Adam
The New Patriotic Party (NPP) has called on the government to identify the foreign companies purchasing the country’s gold and make public the agreements governing those transactions.
The party is also demanding details of the prices, discounts, financing arrangements and other commercial conditions under which the gold is being sold, arguing that Ghanaians have a right to know how the country’s mineral wealth is being traded.
The call was made by a member of the NPP’s Policy Coordinating Committee on Finance and Economy and former Finance Minister, Dr. Mohammed Amin Adam, at a press conference yesterday.
Dr. Amin Adam said the disclosure of the information would enable the public to assess whether the transactions were commercially beneficial to Ghana and whether the country was obtaining adequate value from its gold.
“We want to know the names of the foreign buyers of Ghana’s gold and the discounts and commercial terms they were given. Those contracts must be published,” he said.
He alleged that discounts granted to buyers had been a factor in the financial losses associated with the gold purchasing programme and questioned why the relevant agreements had not been made available for public scrutiny.
The former Finance Minister also criticised moves to enable foreign buyers to pre-finance gold purchases. He argued that such an arrangement could strengthen the bargaining position of the buyers and potentially affect the prices at which Ghana’s gold was ultimately sold.
“Allowing foreign buyers to pre-finance purchases of gold would deepen the very discounts that have been draining value from the programme,” he alleged.
Dr. Amin Adam further raised concerns about the cost of replacing Bank of Ghana financing with commercial bank funding.
He said commercial lenders would impose interest and guarantee charges, unlike the central bank, which he said had previously provided interest-free financing for the gold purchases.
“Financing through commercial banks, as we now know they are doing, brings interest and guarantee costs because commercial banks will charge them. The Bank of Ghana pre-financed them interest-free. It is not going to be the same,” he stated.
The NPP has consequently asked Finance Minister, Dr. Cassiel Ato Forson, to explain whether the government intends to guarantee the proposed financing arrangement.
The party also wants the Minister to state the specific legal authority that would permit such a guarantee.
“We are asking the Finance Minister whether the Ministry will guarantee this new financing and under what legal authority,” Dr. Amin Adam said.
Beyond the identity of the foreign buyers, the NPP is demanding details of the financial relationship between Ghana Gold Board (GoldBod) and the Bank of Ghana.
Dr. Amin Adam specifically called for the publication of the agreement covering the reported transfer of about GH¢133 billion in central bank funds through GoldBod.
“We have not seen that agreement. What are the terms between GoldBod and the Bank of Ghana?” he asked.
He said the documents being requested were already in existence and maintained that some were subject to statutory disclosure requirements.
The NPP has also proposed a joint reconciliation of the financial figures by GoldBod, the Bank of Ghana and the Ministry of Finance to resolve what it described as inconsistencies in the accounts relating to the gold transactions.
Dr. Amin Adam said the reconciliation should provide a clear picture of the funds committed to the programme, the income generated and the losses incurred.
The former Finance Minister maintained that publishing the relevant contracts and financial information would promote transparency and allow Ghanaians to independently determine whether the country was receiving fair value for its gold.
A Daily Guide Report