GoldBod cannot be both trader and regulator – Dr. Amin Adam warns

The proposed GoldBod initiative has sparked debate in Parliament. Former Finance Minister Dr. Mohamed Amin Adam raised concerns about its structure. He warned it could lead to conflicts of interest.

During discussions on the GoldBod Bill, he criticized the government's plan. The proposal gives GoldBod both commercial and regulatory powers, which he believes is flawed.

Dr. Amin stated, “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 expressed worries about potential abuse and lack of oversight.

He compared this situation to the oil industry. Dr. Amin noted steps taken by a previous administration for regulatory independence.

“In the oil industry, the previous administration separated the Petroleum Commission from GNPC,” he explained. This separation allowed GNPC to focus on commercial operations while the Petroleum Commission handled regulation.

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

Under this proposal, GoldBod would be the exclusive buyer of gold from licensed small-scale miners through accredited aggregators. It would also serve as the sole assayer of gold.

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

However, concerns remain about combining regulatory and commercial functions in one institution. Critics worry it could undermine transparency and accountability.