Gold-for-oil: Government bought first 40,000 metric tons of oil with cash – Jinapor

Ranking Member on Energy and Mines Committee in Parliament, John Jinapor has said government bought its first 40,000 metric tons of oil under the Gold-for-Oil programme with cash.

According to him, the Minority has raised a number of questions about the modalities the government is adopting with gold-for-Oil initiative but there is no response yet.

Speaking on the Morning Starr with Naa Dedei Tettey on Thursday, February 2, 2023, the ranking member indicated that there has not been any formal communication to Parliament on the transaction on the Gold for Oil program.

“The Mines and Energy Committee hasn’t been briefed. All we are aware of is a statement in the public by the Vice President that they were going to engage in what he called a barter trade where they will exchange our gold directly for oil. Indeed he was very categorical that forex or currency will not be involved."

“Fortunately, 40,000 metric tons of diesel have arrived. Yesterday, I had the opportunity to hear the Deputy Minister for Energy, Andrew Egyapa Mercer and he confirmed to my dismay that the first parcel of oil, that is the diesel, was not procured with gold. Rather it was procured with cash from the Bank of Ghana. This clearly defects from what the Vice President has been telling us,” Mr. Jinapor stated.

According to him, the deputy minister stated that “contrary to what the Vice President said they (government) rather bought that parcel of oil with a cash amount from the Bank of Ghana. And my checks at the time that the oil was procured PMMC has not even bought an ounce of gold.”

Mr. Jinapor further added that the deputy minister also confirmed that they have an intermediary.

“If you are doing a barter trade you don’t need an intermediary. Barter trade simply means that I give you a commodity and you also give me a commodity. So once you hear of an intermediary what it means is that you are selling the gold to that intermediary."

“So this whole gold for oil barter trade is nothing but a calculated, cooked thing from the Vice President’s office aimed at taking gold from the license gold exporters and selling it through an intermediary and using that dollars to procure oil.”