Former Minister for Finance Dr. Mohammed Amin Adam, has raised critical questions over the current structure of the Ghana Gold Board (Goldbod), which combines two conflicting roles.
The former Minister for Finance says it is very concerning for the Act passed by parliament to combine both commercial and regulatory roles.
Dr. Amin Adam argues that the current act, which gives the Goldbod the authority to regulate the small-scale mining sector while at the same time trading in gold, is a recipe that can undermine transparency, fairness, and effective oversight of the sector.
Making his submission on the floor of parliament, Dr. Amin Adam argued that even the practice of combining regulatory and commercial functions for one entity is a flawed governance framework that is discouraged across the world.
“The model where institutions are established to play multiple roles combining commercial functions with regulatory oversight is being discouraged worldwide,” he indicated.
In his view, a body that trades and exports gold while also setting the rules of the market is inherently conflicted. How can GoldBod ensure a level playing field when it competes with private gold traders while also enforcing industry regulations?
This creates a dangerous monopoly, stifling competition and potentially opening doors to corruption.
He believes the best approach the government could have copied from is the one undertaken in the oil sector, where the Petroleum Commission was carved out of GNPC to ensure that the national oil company focused purely on commercial operations while an independent body handled regulation.
“The best practice now is to separate the commercial role from the regulatory function so that effective oversight can be maintained. If this bill is passed, GoldBod will be a commercial entity that trades and exports gold while also acting as a regulator and court. That is not right, he noted.
He added that, “in the oil industry, the previous administration separated the Petroleum Commission from GNPC, ensuring that GNPC focused purely on commercial operations while the Petroleum Commission handled regulation.”
He is, therefore, calling on the government to rethink the GoldBod structure and ensure clear separation of regulatory and commercial functions. The success of the Petroleum Commission and GNPC split serves as a blueprint for responsible governance, and many believe Ghana’s gold sector deserves no less.
The big question remains: Will lawmakers listen and ensure GoldBod is structured to promote transparency, accountability, and fairness in the gold industry?
