Adnan Adams Mohammed
A key player in the extractive industry has called for the immediate publication of the policy document regarding the gold-for-oil policy to ensure transparency of the agreement’s terms and conditions.
Dr. Steve Manteaw, a policy analyst with the ISODEC believes that providing comprehensive details about the policy is essential to dispel any suspicions and ensure transparency.
The government’s gold for oil policy was borne out of the country becoming strapped of foreign exchange. The policy is to enable the government directly exchange gold for oil while avoiding to use foreign currency, particularly the dollar, as a means to control the country’s inflation. But, the analyst further believes that revealing the terms of the agreement can instill public confidence in the gold-for-oil policy.
“We don’t know how Ghana procures its petroleum products and at what cost, nor do we know the cost of facilitating the gold-for-oil program. All of these things need to be disclosed so that we can hold our duty-bearers accountable. We want to see a comprehensive gold-for-oil policy because, as it stands, there is none. All we have seen are headline pronouncements”, Dr Manteaw made these remarks during the launch of the 2020 Ghana Extractive Industries Transparency Initiative report.
“There is no blueprint document, and Parliament must take an interest in this. They must see the policy document, interrogate it, and see how best it serves the national interest.”
However, the Chairman of Ghana Chamber of Bulk Oil Distributors, Dr. Patrick Kwaku Ofori, says the government’s gold for oil policy has cornered bulk oil distributors working in the country.
Noting that, none of the BDCs had anticipated such a policy as it places them in a tight spot in competition against the government.
Dr. Ofori, speaking in an interview indicated that, the policy will have a toll on the regulators’ revenue generation, “because none of the BDCs or those BDCs who have paid their license fee did not necessarily pay for a license fee to be cornered a percentage of the matter.”
“They want to be given the right climate to conduct their business. And also don’t forget these private entities also employ Ghanaians and they also pay their taxes.
“So it’s a bit of a tricky situation there, and the programme obviously impacted on private sector participation judging from how private sector can also assess the proceeds of the revenue coming from the gold purchases.”
He however suggested that government could change their policy to allow private sector engagement.
“But if government intends to change their policy with regards to the gold for oil and allow private sector participation and say that ‘well as a country, all our revenue that we’re going to generate from maybe gold export, we’re going to use maybe a percentage of it to finance our refined product importation .
“And by so doing, either through the Central Bank reactivating the forex option so that both the private sector and the public entities who are interested in importing refined products can go through those competitive processes to be able to have the product.’”
He also stated that another option was for the Bank of Ghana to surrender all gold proceeds and revenue in a way to guarantee forex availability to the commercial banks for all importers to have access to them.
