The Ghana Chamber of Mines has strongly rejected lingering suspicions that large-scale mining companies manipulate production or revenue figures to shortchange the state in the areas of fiscal obligations.
The Chamber maintains that such allegations and claims are outdated and disconnected from the strict governance, regulatory, and reporting controls that govern large-scale mining companies.
The President of the Chamber, who doubles as the Vice President of Gold Fields West Africa Region, Michael Edem Akafia, dispelled the rumours and allegations when he interacted with some fellows of the Africa Extractives Media Fellowship (AEMF).
Michael Edem Akafia enumerated about 7 reasons why such allegations, rumours, and suspicions are just a figment of some people’s imagination.
1. Personal Liability: “No Director Wants to Go to Jail”
Michael Edem Akafia stressed that corporate governance standards have fundamentally changed since the collapse of Enron or the Enron scandal.
He revealed that in the post-Enron era, directors of listed companies face personal liability for material misstatements in financial accounts. Executives can be prosecuted and jailed for false declarations.
“These days, there’s no director who will lend himself to that kind of activity because that’s him going to jail,” he said.
For publicly listed firms, he added that the legal and reputational consequences are simply too severe to risk manipulation.
2. Market Guidance: No Incentive to Under-Declare
He further mentioned that mining companies listed on stock exchanges provide regular market guidance to investors. They signal expected production and revenue in advance to attract investment interest.
According to the President of the Chamber, this makes under-declaration irrational.
“When we give market guidance, we try to be as optimistic as possible,” he explained. “So what’s the incentive to go and under-declare?”
He adds that every quarter, actual performance is measured against guidance. Discrepancies would immediately raise red flags among investors, analysts, and regulators.
3. Confusion Between Large-Scale and Small-Scale Mining
He acknowledged that suspicions often stem from discrepancies observed in gold trade flows, such as reports of higher imports recorded in destinations like Dubai compared to Ghana’s declared exports.
However, he insisted these concerns are largely linked to small-scale and informal mining operations, not large multinational firms.
“It’s not us. It’s the small-scale people,” he said, noting that illicit flows remain an enforcement issue outside the formal large-scale mining system.
4. Independent Assaying and Laboratory Controls
He further indicated that there are internal and external systems for control in large-scale mining firms. Edem Akafia says there are detailed chain-of-custody controls within large-scale mines.
He mentioned systems such as the independent laboratories that operate on-site. He adds that SGS conducts verification and assaying for most major producers.
Moreover, he reveals that there is a customs officer permanently stationed in the gold room of all large-scale mining companies.
Beyond company-level checks, additional verification is conducted under the National Assaying Programme, previously under Precious Minerals Marketing Company and now handled by the Ghana Gold Board.
On top of internal controls, government agencies independently validate what leaves the country.
“We always have a laboratory on site, and it’s independent of us. SGS does it for most of the big players. We’ll verify and do the assaying on site. On top of that, which we thought was redundant, but we agreed to the National Assaying Programme assigned to PMMC, now it’s the Gold Board’s job to do a further verification of the gold that is leaving,” he narrated.
5. Immediate Ownership Transfer
He further explained that once gold leaves the secured gold room, ownership and risk transfer immediately to the refiner under standardized refining contracts.
“We don’t want the gold. It’s money we want,” he said.
Moreover, under domestic gold purchasing arrangements with the Bank of Ghana, ownership transfers to the central bank once the gold exits the facility.
Mining firms are paid for their output; they do not trade or store the gold beyond controlled transfer points.
6. IFRS and Transparency Standards Close Loopholes
International Financial Reporting Standards (IFRS), he explained, have significantly reduced room for accounting manipulation.
Practices such as off-balance-sheet concealment and misuse of exceptional items, once exploited in global corporate scandals, have largely been tightened.
“As listed companies, we must publish our accounts,” he said. “Every quarter, guidance is matched with actuals.”
Financial records are scrutinized not only by regulators but also by investors, auditors, and analysts globally.
The Bottom Line: Consequences Are Too Dire
The President of the Chamber of Mines maintains that for large-scale responsible miners, there is no economic logic and no governance space for systematic shortchanging.
“The consequences are dire when there are material misstatements in your books,” he said.
While acknowledging that illegal mining and smuggling remain real national challenges, the Chamber insists that suspicions directed at listed, large-scale operators conflate two very different segments of the industry.
He says that the transparency, layered verification, and global reporting obligations make manipulation not just risky, but irrational.
