Oforikrom Member of Parliament Michael Kwasi Aidoo has questioned the Ghana Gold Board’s (GOLDBOD) decision to raise $75 million from commercial banks to finance its operations, following indications that the Bank of Ghana (BoG) will no longer fund the state gold-buying agency.

Aidoo said the move raises concerns about who would ultimately bear any losses arising from GOLDBOD’s gold trading activities, particularly after what he described as significant losses previously absorbed by the central bank.

In a Facebook post, the MP cited the International Monetary Fund’s sixth review of Ghana’s programme under the Extended Credit Facility, which he said highlighted the BoG’s involvement in “quasi-fiscal activities”.

The IMF has called on the central bank to avoid such activities as part of efforts to strengthen its balance sheet and restore its financial autonomy.

Aidoo argued that the Domestic Gold Purchase Programme (DGPP), which was previously financed by the BoG and has since been transferred to GOLDBOD, contributed to the central bank’s financial difficulties.

Under the arrangement, GoldBod became Ghana’s sole buyer and seller of gold, with the BoG providing funding for the programme.

The MP alleged that the gold trading operations resulted in losses exceeding $1.7 billion, which he said were ultimately passed on to the BoG.

He questioned whether commercial banks providing the new $75 million facility could face a similar situation if GoldBod’s trading operations generate losses.

“Should Goldbod make losses from this, would they push the losses to these commercial banks as they did with BOG?” he asked.

Aidoo also questioned GoldBod’s trading margins and foreign-exchange exposure, arguing that losses could arise when gold is purchased at higher prices and later sold at lower prices, or when exchange-rate movements affect the value of transactions.

He further accused the gold agency of using accounting treatment to present a stronger financial position while the underlying trading losses remained unresolved.

“After making all these losses on trade, they then sat down with accountants to move the debt to BOG books to make Goldbod look clean,” he alleged.

Aidoo estimated the overall burden on taxpayers at about GH¢22 billion and called for greater scrutiny of GoldBod’s financial operations.

His comments come amid renewed debate over the sustainability and financial impact of the government’s gold-buying programme following the IMF’s latest review.

The IMF has said strengthening the BoG’s balance sheet and avoiding quasi-fiscal activities are important to restoring the central bank’s financial autonomy.