GoldBod’s 2025 operations cost Ghana nearly US$1.9bn – Amin Adam

Former Finance Minister, Dr Mohammed Amin Adam, has said the total financial impact on Ghana from the Ghana Gold Board’s (GoldBod) operations in 2025 is approaching US$1.9 billion, when foregone tax revenue is added to the more than US$1.7 billion loss reported by the International Monetary Fund (IMF) under the Domestic Gold Purchase Programme (DGPP).

The IMF, in its recent report, said the DGPP recorded losses of more than US$1.7 billion in 2025, with most of the losses linked to the purchase of doré gold under the Gold for Reserves initiative.

However, speaking to journalists on Tuesday, September 1, Dr Amin Adam said the reported trading losses did not represent the full financial impact of the programme on the country.

He said the government’s decision to scrap the 1.5% withholding tax on unprocessed gold from small-scale miners resulted in about US$150 million in foregone revenue in 2025.

“The government scrapped the 1.5% golden tax on unprocessed small-scale gold. And for 2025, it amounted in revenue terms to $150 million in revenue foregone. We did not get that revenue because of GoldBod’s operation.

“That is a loss that hasn’t been accounted for. And so, if you add the foregone tax revenue to the trading losses of $1.7 billion that we are discussing today, the total cost to the country in that single year approaches $1.9 billion,” he said.

Dr Amin Adam further raised concerns about the financial support provided to GoldBod by the government, including a GH¢4.54 billion revolving government fund.

He argued that the use of the fund to support GoldBod’s operations should be considered when assessing the surpluses declared by the institution.

“The government provided GoldBod with $4.54 billion Ghana cedi revolving government fund, which they are now using as part of their revenue to declare a surplus,” he said.

He also criticised the government’s decision to exempt GoldBod from paying taxes under Section 21 of the Ghana Gold Board Act.

According to him, the exemption means GoldBod has not paid income tax or dividends to government despite declaring surpluses.

“The government also exempted GoldBod entirely from tax payment under Section 21 of the Ghana Gold Board Act. So it has paid nothing into the government’s main treasury,” he said.

“They haven’t paid income tax, even though they declared surpluses. They haven’t paid dividends to the government, even though they declared surpluses. So why is Ghana losing that money if really GoldBod declared a surplus?” he questioned.

Dr Amin Adam further questioned the decision by the Bank of Ghana (BoG) to finance GoldBod’s operations interest-free.

He said the absence of interest charges on funds provided to GoldBod meant the institution’s reported costs and surpluses might not reflect the full cost of its operations.

“The government also allowed the Bank of Ghana to finance the whole GoldBod operation interest-free. Interest-free. They did not charge any interest for the money they gave to GoldBod to go and buy gold,” he said.

He argued that if financing costs had been included in GoldBod’s cost build-up, they could have significantly affected the surpluses reported by the institution.

“So why is it that GoldBod did not account for interest on that money in their cost build-up? If they added that to their cost build-up, what they are calling a surplus would have exposed them,” he said.

Dr Amin Adam described the financial arrangements supporting GoldBod as unprecedented and questioned why such extensive support had not translated into better financial outcomes for the country.

“Never have we seen an agency of government giving a golden spoon similar to what GoldBod has been given,” he said.

“And yet, it is the same agency whose operations brought us unprecedented losses in a single year, whilst it claims it made surpluses,” he added.

He also warned that any restrictions imposed on Ghana’s gold by major international refiners or the London Bullion Market Association over concerns about the sourcing of the gold could impose further costs on the country.

Crtedit to Channelonenews