Professor Isaac Boadi, Executive Director of the Institute of Economic Research and Public Policy (IERPP), has called for a comprehensive financial account of Ghana's Domestic Gold Purchase Programme (DGPP). This demand aims to establish the programme's true overall cost and benefit to the country.
The call for transparency follows an ongoing dispute over a reported GHS 25.5 billion ($1.7 billion) loss linked to the gold purchase scheme. Professor Boadi questioned how these reported losses, particularly from the Bank of Ghana (BoG), should be assessed alongside revenues generated by GoldBod. He stressed that evaluating individual institutions in isolation is insufficient to determine the state's actual financial outcome.
This situation fits into a broader narrative of public finance scrutiny in Ghana, especially concerning state-backed initiatives and their economic impact. The country has faced significant economic challenges, including high debt levels and currency depreciation, making efficient management of national resources critical. Previous government programmes have often faced calls for greater accountability and transparency regarding their financial performance.
Speaking on the Asaase Breakfast Show on Monday, August 24, Professor Boadi stated, "Should we assess GoldBod’s performance in isolation? Or should the entire DGPP be consolidated when we are determining whether the state actually made or lost money?" He highlighted the importance of distinguishing between accounting losses, which reflect financial record changes, and broader economic costs and benefits to society. Despite this distinction, he maintained that the reported GHS 25.5 billion loss is significant enough to warrant thorough investigation.
The implications of this demand are far-reaching, potentially leading to a full parliamentary inquiry or a detailed audit of the DGPP. Decision-makers and financial markets will closely watch for any official response from the Bank of Ghana or the Ministry of Finance. Increased transparency could restore public confidence in government programmes and influence future policy decisions regarding resource management and state-owned enterprises. A clear understanding of the DGPP's financial performance is crucial for Ghana's economic stability and investor confidence.
Professor Boadi also questioned the decision to expand the programme despite an earlier reported loss. He remarked, "The scale-up brought the losses." He suggested that if an initial loss of GHS 6 billion ($400 million) was incurred previously, greater caution should have been exercised before scaling up the initiative. This highlights concerns about risk management and decision-making processes within state-backed economic programmes.
He specifically called for greater transparency regarding all programme transactions. This includes detailed information on where gold was purchased, the prices paid, all financing costs, and any associated fees, commissions, and sales records. Such granular data would allow for a complete and accurate assessment of the programme's financial health and its contribution to national wealth.
A consolidated account would empower both the public and Parliament to understand precisely how much Ghana spent on the programme. It would also clarify what the country received in return and, crucially, whether the DGPP ultimately delivered a net benefit. This level of accountability is vital for democratic oversight and ensuring public funds are managed effectively. The outcome of such an investigation could set a precedent for how future large-scale government economic initiatives are evaluated and reported.
The demand for a comprehensive review underscores the need for robust governance and financial oversight in Ghana's resource sector. Ensuring that programmes like the DGPP are not only economically viable but also transparently managed is paramount for sustainable development. This scrutiny will help prevent future financial discrepancies and build trust between the government and its citizens regarding the management of national assets.