Former Finance Minister Amin Adam raises concerns over structure of GoldBod

Former Finance Minister Dr. Mohamed Amin Adam has raised concerns about the GoldBod initiative. He believes its structure could lead to conflicts of interest.

During a Parliament session on the GoldBod Bill, he spoke as the Ranking Member of the Finance Committee. He noted that international best practices discourage combining commercial and regulatory roles.

Dr. Adam emphasized that there should be a clear separation between these functions. This separation ensures proper checks and balances in governance.

He stated, “The best practice now is to separate the commercial role from the regulatory function.” This approach helps maintain effective oversight.

**Concerns Over GoldBod’s Role**

Dr. Amin Adam warned that passing the bill as it stands would create issues. The GoldBod entity would trade, export, regulate, and resolve disputes in gold.

He cautioned, “If this bill is passed, GoldBod will be a commercial entity that trades and exports gold while also acting as a regulator and court.” He believes this is inappropriate.

He cited Ghana's oil sector as an example of successful separation of roles. The Petroleum Commission regulates while the Ghana National Petroleum Corporation (GNPC) focuses on commercial operations.

“In the oil industry, the previous administration separated these entities,” he explained. He stressed that failing to do so for GoldBod could lead to conflicts of interest.

**What is GoldBod?**

The government proposed the GoldBod initiative to formalize gold trading in small-scale mining. It aims to promote traceability and enhance Ghana’s reputation in international gold markets.

GoldBod would be the sole buyer from licensed small-scale miners through accredited aggregators. Officials believe this will reduce gold smuggling and stabilize foreign exchange reserves.

Currently, multiple entities are involved in gold purchasing in Ghana. These include Precious Minerals Marketing Company (PMMC), Bank of Ghana (BoG), Minerals Income Investment Fund (MIIF), and private aggregators.

**Previous Gold Purchase Program Success**

Dr. Amin Adam praised the Bank of Ghana’s Domestic Gold Purchase Programme launched in June 2021. This program significantly boosted Ghana’s gold reserves.

Before this initiative, Ghana had 8.74 tonnes of gold reserves. By late 2024, reserves increased to 30.5 tonnes—a remarkable improvement within three years.

“Since independence, Ghana’s gold reserves stood at 8.74 tonnes,” he said. “But within three years, we increased this to 30.5 tonnes.”

His remarks highlight concerns about potential conflicts of interest in GoldBod's structure. He urges Parliament to ensure proper oversight before finalizing legislation.