Minority Demands Bipartisan Inquiry into $214m Gold Trade Loss

The Minority Caucus in Parliament has called for an urgent bipartisan committee to investigate a reported $214 million loss incurred under the Gold for Reserve Programme during the first nine months of 2025.

Speaking at a press conference on Monday, December 29, Member of Parliament for Ofoase-Ayirebi, Kojo Oppong Nkrumah, warned that if current trends continue, the total loss to the state could hit $300 million by the end of the year.

Demands for Transparency and Subpoenas

The Caucus is pushing for an ad hoc investigative body with the authority to subpoena high-ranking officials, including: The Governor of the Bank of Ghana (BoG), the Chief Executive of the Ghana Gold Board (GoldBod) and Key private intermediaries involved in the trade.

The Minority is demanding the full disclosure of contracts, fee structures, pricing formulas, and the criteria used to select private aggregators.

The “Bawa Rock” Controversy

A central point of the Minority’s grievance is the selection of Bawa Rock Limited, owned by one Alhaji Bawa, as the sole licensed aggregator for artisanal gold. Mr. Nkrumah questioned why the state ceded its mandate to a private entity, turning a sovereign reserve-building tool into a speculative trading venture.

“The moment we shift from holding strategic gold to trading gold, pricing and forex risks appear,” Nkrumah stated. “The taxpayer is the one who has to pay the $300 million at the end of the year.”

Systemic Failures and “Galamsey” Concerns

The Minority claims the current system is “designed to make losses” due to a mismatch in exchange rates GoldBod buys gold from small-scale miners at global market prices using “black market” or forex bureau rates, GoldBod then sells the resulting dollars to the BoG at the weaker interbank rate and the resulting exchange rate losses are passed directly onto the Bank of Ghana’s books.

Furthermore, the Caucus raised alarms regarding traceability, suggesting that state funds may inadvertently be used to purchase gold from illegal mining (galamsey) operations.

They have called for an immediate suspension of mining permits in forest reserves.

A Departure from the Original Design

The Minority noted that the original Gold for Oil/Reserve programme, designed to accumulate physical gold to stabilize the cedi—successfully increased Ghana’s reserves from 8.7 tonnes to 31 tonnes in two years without such losses.

They argue that by introducing intermediaries and shifting focus to active trading, the government ignored previous warnings to decouple the regulator from commercial activity.

“This crisis is not about politics,” the Caucus concluded. “It is about whether Ghana still stands as a guardian of the resources we have been given.”

Source: Felix Nyaaba/expressnewsghana.com