“I think we are kidding” — Boadi on government’s reported $1.7bn gold loss
Professor Isaac Boadi, Executive Director of the Institute of Economic Research and Public Policy (IERPP), says Ghana must scrutinise the reported $1.7 billion loss associated with the Domestic Gold Purchase Programme even as the country celebrates attracting $2.62 billion in foreign direct investment (FDI).
Boadi said the reported FDI inflow was positive for Ghana and demonstrated that international investors continued to see opportunities in the economy.
“The figures, for me, when I heard the story, it was a positive news for me as a country,” he said.
He said Ghana should celebrate its ability to attract investment despite the economic challenges facing the country.
“It gives us that hope. We need to celebrate for attracting this money into the country,” he said.
However, Boadi said the positive FDI figure should not prevent the country from asking difficult questions about the management of its existing resources.
“But the lesson is that in as much as we can celebrate, we are fine. We must have courage to ask why a reported 1.7 billion loss under domestic gold is equivalent to about two-thirds of that inflow. That’s it. We need to ask,” he said.
He stressed that the two figures should not be treated as the same type of financial transaction, but argued that their relative size illustrated the scale of the reported loss.
“Because we can’t bring in this money. And then at that level, we are losing money,” he said.
Boadi said the issue deserved investigation irrespective of political affiliation.
“We need to investigate it. This is a matter that we should take our cap off, regardless of our positions, whether you’re into politics or whatever,” he said.
He questioned how Ghana could seek billions of dollars in external financing while potentially losing a substantial amount through a domestic gold programme.
“We went to IMF looking for three billion dollars but the country can generally can lose 1.7. I think we are kidding,” he said.
Boadi said the government should produce a consolidated account showing the costs and benefits of the domestic gold programme.
Such an account, he argued, should show how much was spent on gold purchases, transportation, refining, financing, fees, commissions and foreign-exchange transactions, as well as how much was ultimately received.
“We can just know the net benefit to Ghana. That’s all. If we don’t do this, we’ll have issues,” he said.
The IERPP’s position is consistent with recent calls for greater transparency over the reported DGPP losses and a clearer distinction between GoldBod’s own financial performance and the overall financial outcome of the programme.
