Gov’t Accused of Creating Gold Monopoly, $214m Losses Spark Bipartisan Probe Call
The Minority Caucus is up in arms over allegations that the government has created a monopoly in the gold industry through Bawa-Rock Ltd, the sole entity purchasing gold. They’re demanding a bipartisan parliamentary enquiry into the reported $214 million loss by the Bank of Ghana under the Gold-for-Reserves programme.
According to the Minority, the losses are a result of a flawed system that allows GoldBod to buy gold from miners at market rates and sell to the Bank of Ghana at a lower interbank rate, with the central bank absorbing the exchange-rate loss. They claim this is not a market fluctuation issue, but a design flaw that benefits private intermediaries at the expense of taxpayers.
The Caucus is calling for transparency, wanting the government to disclose the beneficial owners of Bawa-Rock Ltd and the criteria used for its selection. They’re also pushing for the suspension of permits in forest reserves and the introduction of strict traceability measures to prevent state funds from being used to purchase gold from illegal mining operations.
The controversy has sparked concerns about corruption and environmental devastation, with allegations that state-sanctioned gold-buying is laundering proceeds from illegal mining. The Minority is urging civil society and traditional leaders to join the demand for accountability.
The government has been accused of arrogance for downplaying the losses, with the IMF warning that the situation poses a risk to Ghana’s macroeconomic stability. GoldBod, however, denies incurring losses, claiming it expects an income surplus for the 2025 financial year.
The Minority has given the government an ultimatum, demanding an ad-hoc committee with subpoena powers to investigate all GoldBod contracts and the Bawa-Rock monopoly.
