Amin Adam cautions against conflicts of interest in GoldBod initiative

Former Finance Minister Dr. Mohamed Amin Adam has raised concerns about the proposed GoldBod initiative, warning that its structure could lead to conflicts of interest.

Speaking in Parliament, he explained that combining commercial and regulatory roles in one institution, like the GoldBod Bill proposes, is not recommended internationally.

Dr. Adam pointed out that global best practices encourage separating commercial and regulatory functions to maintain proper checks and balances.

He warned that if the bill passes as it is, GoldBod would be a commercial entity that trades, exports, regulates, and even handles disputes in the gold sector, which could create conflicts of interest.

Using the oil sector as an example, he highlighted how Ghana has successfully separated the roles of regulation and commercial operations between the Petroleum Commission and the Ghana National Petroleum Corporation (GNPC).

He advised that a similar approach should be applied to GoldBod to avoid conflicts. The GoldBod initiative, proposed by the government, aims to formalize gold trading, especially within the small-scale mining sector, and improve traceability.

The government wants GoldBod to be the sole buyer and assayer of gold from licensed small-scale miners to prevent gold smuggling and improve the country’s gold reserves and currency stability.

Dr. Adam also praised the Bank of Ghana’s Domestic Gold Purchase Programme, noting that it significantly increased Ghana’s gold reserves from 8.74 tonnes to 30.5 tonnes in just three years, showing the previous program’s success. Dr. Adam stressed the need for proper oversight to avoid conflicts of interest in the GoldBod structure