Introduction

In a significant development for Ghana’s economic oversight, the Bank of Ghana (BoG) has announced the formal directive of an exterior audit into transactions conducted under the Gold for Oil Programme from 2022 to 2024. This order comes after the programme reportedly suffered cumulative losses amounting to approximately GH¢2.2 billion, raising concerns about financial accountability and programme efficiency. The audit is intended to thoroughly investigate potential mismanagement, financial discrepancies, and inefficiencies that have allegedly contributed to these losses. This article explores the background, key findings, and implications of the BoG’s decision, providing essential insights into the state of Ghana’s gold export programme and its broader economic impact.

Key Points

Background

Overview of the Gold for Oil Programme

The Gold for Oil Programme was established as a state-driven initiative to support Ghana’s foreign exchange reserves by facilitating the export of gold in exchange for oil supplies. The programme aimed to address national economic challenges, including the need for stable foreign exchange reserves and to reduce Ghana’s reliance on volatile oil markets. By 2024, the initiative had reached its third year, but mounting losses and various operational challenges had raised alarms among policymakers and financial regulators.

Gold for Reserves Programme

In parallel, the Gold for Reserves Programme operated with a similar objective—to manage Ghana’s gold reserves and stabilize the currency—by converting gold exports into hard currency. However, both programmes faced mounting scrutiny due to financial missteps, operational inefficiencies, and the consequential drain on state coffers.

Financial Performance

The financial outcomes of the two programmes have been starkly different. While the Gold for Reserves Programme showed a slight internet lack of GH¢74 million in 2022, it experienced dramatic losses in subsequent years:

• GH¢317.69 million in 2023;
• Over GH¢1.8 billion in 2024.

Cumulatively, these losses have reportedly reached about GH¢2.2 billion from 2022 to 2024.

Analysis

Reasons for the Audit Directive

BoG Governor Dr. Johnson Asiama cited a range of unresolved issues and operational concerns as the impetus for initiating the audit. These included unresolved financial discrepancies, procedural inefficiencies, and apparent lapses in risk management. The directive reflects the BoG’s commitment to transparency, financial discipline, and the protection of Ghana’s public resources.

Impact on National Economy

The cumulative financial losses from both programmes have significant implications for Ghana’s macroeconomic stability. The Gold for Oil and Gold for Reserves initiatives were intended to bolster the country’s foreign exchange reserves and stabilize the economy, but their financial outcomes have instead contributed to reduced reserves and heightened concerns over national economic management.

BoG’s Approach to Financial Oversight

The BoG’s decision to order an exterior audit reflects a proactive stance on financial governance. By authorizing an independent review, the central bank is seeking to ensure a rigorous examination of its policies and operations. This move not only addresses immediate concerns but also sets a precedent for future accountability in state-driven economic initiatives.

Practical Advice

Understanding the Audit Process

The exterior audit is expected to be conducted independently by approved auditors, likely with oversight from the Public Procurement Authority. The audit process typically involves reviewing financial records, transaction flows, and operational procedures to identify any irregularities or inefficiencies. This process is vital for restoring public trust in the management of state resources.

Implications for Stakeholders

The audit will have direct implications for various stakeholders, including:

• Government agencies involved in programme implementation;
• Small-scale gold miners, who are key contributors to Ghana’s gold exports;
• Financial markets and investors, who may reassess the value and stability of Ghana’s gold export initiatives;
• Public institutions and citizens, who depend on accurate reporting and transparent financial management.

Expected Reforms and Enhancements

The audit’s findings are likely to lead to the implementation of new reforms, such as:

• Strengthening risk management protocols for gold exports;
• Improving oversight and accountability for programme implementation;
• Enhancing transparency in financial reporting and operations;
• Revising financial strategies and safeguards to prevent future losses.

FAQ

Conclusion

The Bank of Ghana’s decision to order an exterior audit of the Gold for Oil Programme, following reported losses of over GH¢2.2 billion, underscores the bank’s commitment to financial accountability and economic discipline. The audit is expected to yield valuable insights into the operational and financial challenges faced by the programme, paving the way for potential reforms and improvements. As Ghana navigates its economic landscape, this development highlights the importance of robust financial oversight, transparency, and accountability in state-driven initiatives.

Sources

• Life Pulse Daily, “BoG orders exterior audit into Gold for Oil Programme after GH¢2.2bn losses,” 2026-01-12.
• Public Accounts Committee (PAC) documents on Foreign Exchange Receipts and Payments on the Central Bank.
• Reports by the Bank of Ghana and the Public Procurement Authority.