Dr Adu Sarkodie expresses worry over politicizing GoldBod loss discussion

Senior Lecturer at the University of Ghana, Dr Adu Owusu Sarkodie, says public discussions surrounding the reported GoldBod losses have become overly politicized, overshadowing key economic issues.

Dr Sarkodie made the remarks during an interview with Bernard Avle on Channel One TV while discussing the reported US$1.7 billion losses linked to Ghana’s Domestic Gold Purchase Programme (DGPP).

According to him, much of the debate has focused on political blame rather than a careful examination of the programme’s objectives, costs and long-term benefits.

“We have over-politicised the issue,” Dr Sarkodie said, stressing that the discussion should be guided by facts and a clear understanding of how the programme operates.

The economist argued that institutions involved in the programme should have done more to explain the figures contained in the International Monetary Fund’s report and provide the public with adequate information on how the losses were recorded.

He noted that the reported losses should not automatically be interpreted as conventional commercial losses, explaining that the IMF classified them as revaluation losses arising from changes in the valuation of gold and foreign exchange transactions.

He also called for a balanced assessment of responsibility between the Ghana Gold Board (GoldBod) and the Bank of Ghana, maintaining that both institutions play significant roles in the programme.

“Some of the purchases are done directly by GoldBod. So, whatever the loss that has come from that angle is your loss. BoG then sells and because of the exchange rate differentials makes a loss, and that is BoG’s loss,” he explained.

He therefore proposed that the two institutions share the costs associated with the programme rather than placing the burden entirely on one entity.

Dr. Sarkodie further questioned whether Ghana could have achieved the objective of building its gold reserves at a lower cost, insisting that policymakers should focus on improving efficiency and transparency in the implementation of the programme.