Cedi appreciation: Gov't’s expenditure misalignment must be investigated - Gideon Boako

Dr. Gideon Boako, a member of Parliament’s Finance Committee, spoke about the cedi's recent appreciation. He linked this to government spending issues under the current NDC administration.

On JoyNews' The Pulse, Dr. Boako raised concerns about the Ghana Gold Board (GoldBod). He questioned where the funds for their large gold purchases came from. He suggested that money meant for important sectors might have been misused.

“There is expenditure misalignment,” he stated. “When Parliament resumes, we will ask many questions.”

He noted that the Finance Minister initially allocated $200 million to $400 million for GoldBod in the 2025 budget. However, actual spending has surged significantly.

“In the 2025 budget, the Finance Minister said he would allocate around $200 or $300 million for GoldBod to buy gold,” he explained. “Today, they have spent close to $3 billion.”

Dr. Boako asked where this extra money originated. “Did it come from the central bank or central government? We need answers,” he said.

He warned that unplanned spending could drain public resources meant for essential services. Instead of funding ministries, these resources are being used to buy gold and convert it into dollars.

“They used cedis to buy gold and then sold it for foreign exchange,” he noted. “It’s not surprising Ministers complain about not receiving funds.”

He believes this could explain the cedi's recent gains but emphasized concerns about transparency and fiscal discipline.

“What this suggests is that the government is not spending properly,” he added. “Cedi revenue should finance critical expenditures but is instead used to stabilize currency through GoldBod.”

Dr. Boako insisted that the Finance Minister must clarify how GoldBod spent nearly $3 billion in just four months.

“This issue of expenditure misalignment needs investigation,” he concluded. “We must understand where GoldBod got its funds.”