The Dean of the Faculty of Accounting and Finance at the University of Professional Studies, Accra (UPSA), Professor Isaac Boadi, has called on the government and the Bank of Ghana (BoG) to explain the reported $1.7 billion loss linked to the Domestic Gold Purchase Programme (DGPP).
Speaking about the IMF-reported GoldBod loss on Wednesday, August 19, Prof. Boadi said the reported loss was significant and required a clear explanation to Ghanaians.
He said the figure suggested that the country was losing about 17 cents for every dollar of gold sold under the programme. According to him, the reported loss is also equivalent to roughly 1.5 percent of Ghana’s Gross Domestic Product (GDP).
Prof. Boadi questioned how the financial performance of the programme should be assessed, particularly given the different positions of the Bank of Ghana and GoldBod.
He explained that while the central bank incurred costs from the transactions, GoldBod generated revenue through fees and other related charges.
This, he said, raised the question of whether GoldBod’s performance should be assessed separately or whether the finances of the entire Domestic Gold Purchase Programme should be considered together.
“Should we assess GoldBod’s performance in isolation? Or should the entire DGPP be consolidated when we are determining whether the state actually made or lost money?” he asked.
The UPSA dean also referred to an International Monetary Fund (IMF) report which indicated that losses incurred by the Bank of Ghana were expected to be transferred to GoldBod.
He urged the government and the two institutions to disclose when the transfer would occur and explain how it would affect GoldBod’s financial position.
Prof. Boadi further called for details of the gold transactions, including the quantities purchased, prices paid, sources of the gold, financing arrangements, buyers, selling prices and dates of sales.
He said such information was necessary to help Parliament, investors and the public understand the actual cost and returns of the programme.
He warned that conflicting financial reports could undermine public confidence and urged the BoG and government to provide a clear account of the reported loss and GoldBod’s financial position.
