GoldBod has delivered unprecedented benefits to Ghana – Dr. Steve Manteaw

Co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), Dr Steve Manteaw, has defended the establishment of the Ghana Gold Board (GoldBod), arguing that its operations have delivered significant benefits to Ghana’s economy.

He said without GoldBod, much of the gold now captured through the domestic gold purchasing system could have been lost to foreigners through smuggling.

Dr Manteaw also questioned the characterisation of the $1.7 billion costs associated with the domestic gold purchase programme as losses, arguing that some of the figures may have been incorrectly classified.

In a series of social media posts on Thursday, August 27, Dr Manteaw said GoldBod’s operations had helped Ghana reduce its reliance on borrowing to support the cedi.

“If GoldBod had not existed, the benefits we are seeing today, would have accrued to foreigners through smuggling, while we borrow from the Euro bond market to support the cedi," his posts read in part.

He argued that the institution represented an important policy shift in the management of Ghana’s gold resources and foreign exchange.

According to him, the reported losses associated with the domestic gold purchase programme should be examined carefully before conclusions are drawn about GoldBod’s performance.

Dr Manteaw said Ghana had not recorded a declared profit since the domestic gold purchase programme began in 2021 which to him, is an indication that there could be fundamental issues with the accounting treatment of some transactions.

He specifically questioned the classification of assay fees paid by the Bank of Ghana (BoG) to GoldBod in relation to gold shipments.

“How can assay fees paid by BoG to GoldBod, in respect of gold shipment, constitute part of the BoG loss? Common sense tells me it's a cost associated with BoG's gold exports and an income to GoldBod," he argued.

Dr Manteaw’s comments come amid an ongoing debate over the financial implications of Ghana’s domestic gold purchasing programme after an International Monetary Fund (IMF) report highlighted significant costs associated with the programme.

The issue has triggered calls for greater scrutiny of the programme, with critics questioning the scale of the reported losses and the financial management of GoldBod.