Where is illegal gold going despite GoldBod? – Zaato demands answers

Dr. Joshua Jebuntie Zaato, a political science lecturer at the University of Ghana, has raised critical questions about the fate of gold extracted through illegal mining operations, especially in the wake of the government’s implementation of GoldBod, a system designed to restrict gold exports.

Speaking on TV3’s Key Points program, Dr. Zaato challenged the government to explain how illegal miners continue to operate if, as claimed, there’s no exit route for gold to leave the country.

“If we are told that there’s no way gold will escape the country due to GoldBod, yet illegal mining is still thriving, where is the gold going?” he questioned.

Concerns over Forex Black Market

Dr. Zaato also criticized the government’s failure to deal with black market currency traders, locally known as abochi. He said these middlemen continue to undermine the formal financial system.

“You go to the bank and there’s no dollar, but the abochi is right behind the bank with dollars ready at higher rates,” he said, calling the situation unacceptable and damaging to the economy.

Calls out Government on Mixed Messaging

The academic further accused the Mahama administration of sending conflicting messages about the state of Ghana’s economy. He noted that while the current leadership blames the former government for leaving behind a so-called “crime scene,” they also tell international bodies like the IMF that a solid foundation had been laid.

“There’s a contradiction. You tell the IMF the previous administration laid a good foundation, yet tell Ghanaians the economy was in shambles. That’s not consistency,” Dr. Zaato argued.

Context from the Mid-Year Budget

Dr. Zaato’s comments follow recent statements by Finance Minister Dr. Cassiel Ato Forson, who accused the previous Akufo-Addo government of mismanaging the economy, leaving behind weak banks, rising non-performing loans, and an IMF program off track.

He described the situation as a “crime scene” and said the Mahama administration has since embarked on structural reforms to stabilize the economy.