The flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, promises to investigate the government’s gold-for-oil policy if he is elected president.
He contends that the arrangement lacks transparency and warrants a thorough investigation.
The government introduced the gold-for-oil deal in 2021 to address the cedi depreciation and the hike in fuel prices.
Speaking at the 3rd Annual Transformational Dialogue on Small-scale Mining at the University of Energy and Natural Resources (UENR) in Sunyani, Mr. Mahama says the deal will be looked at again.
“We will investigate the opaque gold for oil programme and expose the actors benefiting from this so-called barter agreement. Reports reaching me suggest that a new debt burden is being created because Ghana has not been able to keep up with its delivery of gold under the programme.”
Vice President Mahamudu Bawumia announced the policy in 2022 in an attempt to tackle Ghana’s dwindling foreign currency reserves coupled with the demand for dollars by oil importers, which has weakened the Cedi and increased living costs.
Under the G4O programme, Ghana aims to secure competitively priced oil by selling gold to ease pressure on the Cedi, reverse rocketing fuel prices, and fix the balance of payment problems.
By March 2023, more than 60,000 ounces of gold valued at over $97 million had been purchased from local mines, but the PMMC is targeting at least 160,000 ounces of gold, valued at around $300 million per month, which could help purchase about 50% of the country’s monthly oil demand.
Source: CitiNewsRoom
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