Ghana's Domestic Gold Purchase Programme Raises Red Flags, Says Professor Isaac Boadi

Professor Isaac Boadi, Dean of the Faculty of Accounting and Finance at the University of Professional Studies, Accra (UPSA), has expressed concerns about Ghana's Domestic Gold Purchase Programme. He described the sale of gold at discounts under the program as a 'huge red flag'.

Boadi questioned why Ghana would purchase gold domestically and then sell it on the international market at a discount, especially during times of global economic uncertainty when gold is considered a safe-haven asset.

'If there's any adjective that I can use … it's a big red flag,' Boadi said. He emphasized the need for detailed scrutiny of transactions with off-takers and called for GoldBod to demonstrate that discounts offered were commercially justified by prevailing international gold prices and market conditions.

Boadi also raised concerns about the institutional structure of the program, including the role of the Bank of Ghana in financing GoldBod's operations while potentially absorbing substantial losses. He described this arrangement as involving both an efficiency problem and a 'moral hazard' risk.