Ghana’s Energy Minister, John Abdulai Jinapor, has announced plans to replace the current Gold-for-Oil (G4O) programme due to concerns over its lack of transparency. He emphasized that the initiative is characterized by a high level of opacity, making it unsuitable for effective continuation.
The decision to reform the programme stems from difficulties in obtaining information about deals, especially those involving offshore companies, and unclear criteria for selecting participating firms.
The G4O programme was initially introduced to leverage Ghana’s gold reserves in exchange for petroleum products, aiming to stabilize fuel prices and reduce pressure on foreign exchange reserves.
However, it has faced significant criticism for its operational framework, with the Auditor General flagging several irregularities and critics pointing to a lack of publicly available information on key transactions.
In response to these challenges, the new administration intends to discontinue the current G4O programme and replace it with a more transparent and accountable system. The Minister acknowledged that dismantling the existing structure will require time, including parliamentary approval and extensive legal groundwork. In the interim, efforts are underway to reduce losses and enhance transparency within the current system.
This move aligns with broader concerns about the viability and transparency of the Gold-for-Oil initiative, which has been under scrutiny since its inception. Critics have highlighted significant lapses in financial management, transparency, and accountability within the programme.
The government’s decision to reform the G4O programme reflects a commitment to addressing these issues and establishing a more transparent framework for leveraging the country’s natural resources.
