Combining commercial and regulatory roles is risky – Amin Adam on GoldBod

Former Finance Minister Dr. Mohamed Amin Adam has raised concerns about the GoldBod initiative. He warned that its structure could create conflicts of interest. He spoke during discussions on the GoldBod Bill in Parliament.

Dr. Amin Adam criticized the model where institutions have multiple roles. He noted that combining commercial functions with regulatory oversight is discouraged globally.

He stressed the importance of separating regulatory duties from commercial activities. “The best practice now is to separate these roles,” he said.

The GoldBod initiative aims to formalize gold trading in Ghana's small-scale mining sector. It also seeks to improve traceability and enhance Ghana’s international gold reputation.

Under this plan, GoldBod will be the only buyer of gold from licensed miners through accredited aggregators. It will also serve as the sole assayer of gold.

Government officials believe this approach will reduce gold smuggling. They argue it will improve foreign exchange reserves and stabilize the cedi.

However, Dr. Amin Adam's concerns reflect ongoing debates about the initiative's effectiveness and governance. Critics are calling for a more independent regulatory structure for better oversight.