The government must ensure that the Ghana Gold Board (GoldBod) does not repeat the financial and structural weaknesses associated with the former Gold-for-Oil programme, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has cautioned. He said GoldBod’s operations must be structured to withstand fluctuations in commodity prices, minimise foreign exchange exposure and prevent potential losses from being shifted to public institutions, particularly the Bank of Ghana.
His comments come amid a growing political dispute over the financial performance of GoldBod, with the Minority claiming that the institution has incurred losses of about US$1.7 billion. The Minority Leader, Alexander Afenyo-Markin who spearheaded the claim, has attributed the claim to an International Monetary Fund report. GoldBod Chief Executive Officer Sammy Gyamfi, however, has rejected the allegation and maintained that the institution has generated profits. Mr Amoah said the disagreement should not be allowed to become merely a political contest, arguing that the more important issue was whether GoldBod’s business model was financially sound and capable of protecting public resources.
Speaking on Big Issues on Saturday, August 22, 2026, he acknowledged what he described as positive developments associated with GoldBod, including improved foreign exchange conditions and a decline in inflation. He nevertheless warned that such gains should not lead to premature celebration until GoldBod’s trading model had been sufficiently tested and its financial sustainability established. According to him, the experience of the Gold-for-Oil programme provides an important warning about the dangers of linking commodities whose prices can move sharply in opposite directions.
He explained that when the price of gold falls while the price of oil rises, an entity seeking to secure a fixed quantity of oil would need to provide more gold, potentially creating significant financial exposure. “If gold prices should drop and oil prices should go up, it means you need more gold to be able to pay for. Meanwhile, you’ve already given the Cedi out to buy the gold,” he said. Mr Amoah said the problem becomes more serious when public funds or central-bank resources are used to finance commodity transactions without adequate protection against price and exchange-rate movements.
He therefore urged the government to make the financing arrangements underpinning GoldBod clear, including the source of funds, the applicable exchange rates and the mechanisms for managing trading risks. He also cautioned against relying on the Bank of Ghana to finance trading programmes without clearly demonstrating how the risks and potential losses would be contained. For him, GoldBod should ultimately be capable of financing its gold purchases and trading activities from its own balance sheet while demonstrating that the model can generate sustainable returns.
“If GoldBod is able to finance the gold trading on its own balance sheets and at the end of the accounting year, they’re able to declare profits, we’ll come back next year and clap for them,” he said. Mr Amoah said the current controversy over GoldBod’s financial position should instead provide an opportunity for greater transparency and scrutiny of the institution’s operations. He stressed that the objective should be to identify weaknesses early, strengthen the trading framework and ensure that any gains attributed to GoldBod are backed by a sustainable business model rather than temporary market conditions.
By: Joyce Owusu
