Why does Gold for Oil policy require parliamentary approval? – Egyapa Mercer asks

The Deputy Energy Minister, Andrew Egyapa Mercer, has stated that the gold for oil policy does not require parliamentary approval.

According to him, the policy has to deal with the Bank of Ghana and other parties including the bulk oil distribution companies, and therefore does not need to go through parliament.

He explained on JoyNews’ PM Express Business Edition that there are two sides to the programme. The first is from the Bank of Ghana's side to buy gold from mining companies in Ghana with cedis and use those gold reserves to purchase oil from the international market.

“On even the import side, BOST, before the commencement of this programme [Gold for Oil], if you like, imports petroleum products as part of their operations, do they take it to parliament for approval?

“So if Bank of Ghana is buying Gold in-country as part of its mandate and externalizing it to as it were either swap for commodity on behalf of a Ghanaian importer and or monetize to pay on behalf of a Ghanaian importer which then the Ghanaian importer pays in cedis in Ghana, how does that require parliamentary approval?” he questioned.

The gold for oil policy which was expected to help reduce fuel prices in the country has come under various controversies in recent times.

To this effect, the minority in parliament is demanding that the programme be laid before parliament.

In January, 41,000 metric tons of oil from the United Arab Emirates was delivered to Bulk Oil Storage and Transportation (BOST) to be sold to the OMCs.

But this is yet to reflect in the market price of fuel.

Egyapa Mercer said, “But I know why, especially people in the NDC led by former President Mahama will call for parliament because you know the dynamics there. To the point that the parliament of Ghana passed a law, the Minerals Income Investment Fund Act which then empowered government through the requisite agency to set up a company for purposes of monetising our royalty.

“It’s all in the law. But when government sought to implement the law that had been passed by parliament by way of the Agyapa transaction you saw what happened,” he stated.

SSD/FNOQ