BoG Refutes Claims of Purchasing Galamsey-Sourced Gold, Cites Stringent Sourcing Practices
The Bank of Ghana has denied claims of purchasing illicit gold through its domestic gold purchase programme (DGPP) on the back of the rampant illegal mining of gold particularly by artisanal and small-scale mining activities.
According to the BoG, all activities under the DGPP are strictly governed by a responsible gold-sourcing policy framework which ensures the Central Bank buys gold from legitimate and traceable sources.
“It is of utmost importance to the Bank that the exploitation of gold is done responsibly to ensure full benefits are derived without undue harm to the environment. BoG buys locally produced gold only from London Bullion Marketing Association accredited (LBMA) mining firms, and carefully selected aggregators who purchase gold from traceable sources.
“The Bank’s relationship with all counterparties under the DGPP is governed by its Responsible Gold Sourcing Policy Framework. This Framework requires that all suppliers pass thorough continuous due diligence checks covering governance, risk and compliance, supply chain and business operations in line with best international standards.
“Therefore, any claim of the Bank of Ghana being involved in illicit gold purchase without a legal framework or a failure to trace the origins of the gold is unfounded. For the avoidance of doubt, we would want to state that all activities under the DGPP are strictly governed by a Responsible Gold Sourcing Policy Framework,” posited the Central Bank.
The Central Bank’s denial of its involvement in the purchase of illicit gold as a result of galamsey activities is a response to the assertion made by the Executive Director of the African Centre for Energy Policy (ACEP), Ben Boakye.
Mr Boakye accused the Bank of Ghana (BoG) of potentially being complicit in perpetuating the galamsey menace by purchasing gold through its domestic gold purchase programme without verifying its sources.
He made the assertion during a recent NorvanReports, Economic Governance Platform (EGP) and BudgIT Ghana X Space discussion on the topic “Golden Promises, Muddy Realities: The True Cost of Galamsey to Ghana’s Future.”
Mr Boakye pointed out that the BoG’s failure to trace the origins of the gold it purchases enables the laundering of illicitly mined gold into official channels.
“If you don’t track or trace all the gold you are buying to ensure that it is from legitimate gold production and all you care about is to get gold to buy, then you are participating in the menace.
“So that’s how high we have gone in terms of participation in this illicit trade to even get the Central Bank, Ministry of Lands and Natural Resources, and others to initiate policies to buy illicit gold, but they are not careful to trace where the gold is coming from,” he quipped.
Ghana, one of the world’s leading gold producers, also has a flourishing artisanal and small-scale mining (ASM) sector, which operates with minimal regulation.
It is in this space that galamsey activities thrive, often conducted without regard for environmental protections or legal boundaries.
According to the Bank of Ghana (BoG), since the inception of the Domestic gold purchase programme, the Bank of Ghana has bought 65.4 tons of gold, valued at $5.07 billion. This year, since January, the Bank has bought 23 tons of gold valued at about $1.8 billion.
