We’ll investigate 'opaque' Gold-For-Oil policy – John Mahama

The Flagbearer of the opposition National Democratic Congress, John Dramani Mahama, has promised an investigation into the Gold-For-Oil Policy introduced by the current government if he wins power in the December presidential election.

Speaking at the Third Annual Transformational Dialogue on Small-Scale Mining at the University of Energy and Natural Resources (UENR) in Sunyani, the former president described the policy as lacking transparency, among other deficiencies.

“The Gold-For-Oil was introduced to stabilize the price and then to stabilize the forex. It has achieved none of that. The price has gone up, the forex is still tumbling. The whole agreement is opaque; even I, as opposition leader, don’t know the underlying agreement and who the participants in the Gold-For-Oil deal are,” he said.

According to Mahama, he has been made aware of discrepancies, including the failure of Ghana to meet its requirements under the agreement, a situation he noted will likely pose a challenge for his government if he wins power.

“So, we are going to investigate it and find out what is really happening. My understanding is that the Bank of Ghana is financing it. The Bank of Ghana is posting losses; I hear there are delays, there are backlogs in the delivery of Gold for Oil that has already been taken, and it is possible that another liability is looming when the new government comes into office," he added.

The Gold-For-Oil Policy, introduced by the government in 2022 and spearheaded by Vice President Dr. Mahamudu Bawumia, who doubles as the flagbearer of the New Patriotic Party, was instituted as part of measures to manage Ghana’s dwindling foreign reserves and also deal with the depreciation of the cedi.

However, the policy has received widespread criticisms from various quarters, including the opposition.

GA/AE

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