A Tax For Galamsey: The Extortion Racket Fueling Illegal Mining in Ghana

An explosive investigative documentary titled “A Tax for Galamsey” has unveiled a deeply entrenched system of institutionalized extortion within Ghana’s illegal mining sector. The investigation, conducted in the Amansie Central District of the Ashanti Region, reveals that unlawful mining—commonly known as galamsey—is not a clandestine activity operating in the shadows. Instead, it is a formalized, taxed, and protected enterprise, facilitated by government appointees. This comprehensive report breaks down the findings, context, and implications of this parallel taxation system that undermines Ghana’s environmental laws, mining regulations, and governance structures.

Key Points of the Investigation

The documentary, produced by Hotline and featured on Life Pulse Daily, provides conclusive evidence of a sophisticated racket. The core findings are summarized as follows:

• Systematic Taxation: Illegal miners are compelled to pay fixed “registration” fees—₵3,000 per changfan (a portable washing plant) and tens of thousands of cedis per excavator—for the right to operate without interference.
• Formalized Receipts: Payments are not under-the-table bribes. They are documented with official stickers, receipts, and bank deposits into accounts belonging to the District Assembly, creating a paper trail that legitimizes the crime.
• Official Complicity: The scheme involves a taskforce operating under the authority of the District Chief Executive (DCE). Undercover footage shows Assembly staff and taskforce leaders facilitating and enforcing these payments.
• Multiple Revenue Streams: The National Disaster Management Organization (NADMO) officials are implicated in demanding separate charges, indicating a layered extortion network across different state entities.
• Financial Trail: The investigation follows the money from mining pits to Assembly offices, private apartments, and rural banks, demonstrating a structured, parallel economic system.
• Direct Authorization: Recorded evidence captures the District Chief Executive confirming the authorization of these fees, pointing to high-level approval.
• Legal Breaches: The operation flagrantly violates Ghana’s Minerals and Mining Act, Environmental Protection Agency Act, Public Financial Management regulations, and laws governing local governance and public procurement.

Background: The Galamsey Crisis in Ghana

The Rise of Illegal Mining

Galamsey, a portmanteau of “gather them and sell,” refers to small-scale, often illegal gold mining prevalent in Ghana. While some artisanal mining is licensed, the term is now synonymous with unregulated operations that cause severe environmental damage. These activities involve the use of mercury for gold extraction, leading to toxic pollution of rivers and waterways, deforestation, and the destruction of agricultural land. The phenomenon has been a persistent national crisis, exacerbated by high youth unemployment and the lure of quick wealth from Ghana’s abundant gold resources.

Government’s Stated War on Galamsey

Successive Ghanaian governments have launched military-backed operations like Operation Vanguard to combat illegal mining. These efforts, however, have been criticized for inconsistency, lack of sustainability, and alleged corruption. The narrative has often centered on foreign nationals (particularly Chinese) and remote operators, but the Amansie Central investigation shifts focus to the institutionalized, domestic system enabling the practice from within local government.

The Legal Framework

Ghana’s primary mining law is the Minerals and Mining Act, 2006 (Act 703), which vests all minerals in the President and requires licenses for extraction. The Environmental Protection Agency Act, 1994 (Act 490) mandates environmental impact assessments and permits. Local governance is governed by the Local Governance Act, 2016 (Act 936), which outlines the responsibilities of District Assemblies. The findings suggest a coordinated subversion of these laws, where the very institutions tasked with enforcement are the architects of a scheme that monetizes environmental destruction.

Analysis: How the Extortion Machine Operates

The Taxation Mechanism: From Crime to “Revenue”

The investigation reveals that the extortion is not ad hoc but a structured fee schedule. The ₵3,000 per changfan and excavator fees function as a business license for illegal operators. This transforms a criminal act into a de facto taxable economic activity. The issuance of stickers and receipts is critical—it provides miners with tangible proof of payment, which they can present to the taskforce to avoid arrest or equipment confiscation. This creates a predictable cost of doing business for illegal miners and a steady, illicit revenue stream for the District Assembly and implicated officials.

The Network of Actors

The racket is a multi-layered network:

• The District Chief Executive (DCE): As the political head of the district, the DCE’s recorded confirmation of authorizing the fees suggests executive-level sanctioning of the scheme.
• The District Assembly Taskforce: This unit, ostensibly created to combat galamsey, is repurposed as an enforcement arm for the tax collection. Its members ensure compliance from miners and likely mediate disputes within the illegal mining community.
• Assembly Staff: Clerical and administrative personnel handle the receipting and banking of the illicit funds, integrating them into the Assembly’s financial records.
• NADMO Officials: Their involvement in demanding separate charges indicates the extortion net is cast beyond the primary assembly taskforce, potentially exploiting different bureaucratic mandates.
• Local Bank Personnel: The deposit of cash into Assembly accounts implies bank staff may be complicit or willfully blind to the source of the funds, a potential breach of anti-money laundering provisions.

The Financial Flow: Following the Money

The documentary’s financial tracing is its most damning element. Cash collected at mining sites—often in remote, forested areas—is funneled through a chain:

1. Initial collection by taskforce members or Assembly staff at the pit.
2. Deposit into the District Assembly’s bank account, mixing illicit funds with legitimate public revenue.
3. Potential diversion to private accounts or uses, as suggested by reports of funds ending up in “private apartments.”

This process effectively launders illegal mining proceeds through the local government’s financial system. It turns environmental degradation into a budgetary line item, creating a perverse incentive structure where the destruction of land and water generates income for the very body mandated to protect them.

Legal and Governance Implications

The scheme constitutes multiple serious offenses under Ghanaian law:

• Corruption & Public Office Offenses: The use of public office for private gain violates the 1992 Constitution (Article 284) and the Criminal Offenses Act, 1960 (Act 29).
• Mining Law Violations: Authorizing and taxing unlicensed mining directly contravenes Act 703.
• Environmental Crimes: Facilitating operations that use mercury and degrade ecosystems breaches Act 490 and the Water Resources Commission Act, 1996 (Act 522).
• Financial Misconduct: Depositing illicit funds into public accounts may violate the Public Financial Management Act, 2016 (Act 921) and anti-money laundering laws.
• Abuse of Process: The taskforce’s role in enforcing this illegal tax is an egregious abuse of power and process.

The investigation points to a profound governance failure, where state capture at the district level neutralizes national policy. The “war on galamsey” is rendered ineffective because its foot soldiers and local commanders are financially invested in the enemy’s survival.

Practical Advice and Pathways Forward

Addressing this deeply rooted system requires a multi-pronged, pragmatic approach that moves beyond periodic raids to systemic reform.

For Policymakers and Government Agencies

• Immediate Forensic Audit: The Ministry of Local Government and Rural Development, in conjunction with the Auditor-General, must immediately audit the Amansie Central District Assembly’s accounts, specifically tracing all deposits and expenditures linked to mining-related “fees” over the past five years.
• Independent Special Prosecutor: The Office of the Special Prosecutor should take over the investigation. The involvement of a DCE and a district taskforce necessitates an independent body outside the local command structure to avoid conflicts of interest and ensure witness safety.
• Whistleblower Protection: Establish an anonymous, secure channel for Assembly staff, taskforce members, and NADMO officers to report on the scheme, with guaranteed legal protection and potential rewards.
• Reform District Taskforces: District-level anti-galamsey units must be restructured to report directly to a national, multi-agency command (e.g., a joint military-police-mineral commission taskforce) with a rotating personnel roster to prevent local entrenchment.
• Community Oversight Committees: Legally mandate the formation of district-level citizen oversight committees, with representation from traditional leaders, farmers, and civil society, to monitor Assembly budgets and taskforce activities related to mining.

For Civil Society and Media

• Replicate the Investigation: Media houses must conduct similar undercover and forensic investigations in other high-galamsey districts (e.g., in the Western, Eastern, and Central Regions) to determine if Amansie Central is an anomaly or a national model.
• Map the Financial Network: Collaborate with investigative journalists and forensic accountants to trace the ultimate destination of the illicit funds. Are they used for local projects, personal enrichment, or political financing?
• Legal Empowerment: NGOs should provide legal support to affected communities (farmers, water users) to sue the District Assembly and responsible officials for damages resulting from the illegal mining they are protecting.
• Public Awareness: Launch campaigns to educate citizens that “galamsey taxes” are not a necessary evil but a crime that steals their land, water, and future. Frame it as a direct theft of public resources by public officials.

For the International Community and Investors

• Conditionality on Support: The World Bank, IMF, and bilateral donors should make continued support for Ghana’s local governance and environmental programs contingent on a transparent, independent investigation and prosecution of the Amansie Central case.
• Supply Chain Due Diligence: Gold refiners and consumers (jewelry, electronics) must enhance due diligence to ensure gold from Ghana is not tainted by this state-facilitated illegal mining. The documentary evidence provides a clear red flag for the entire Ashanti Region’s supply chain.
• Support Independent Media: Fund investigative journalism initiatives in Ghana that focus on resource governance and corruption, as they are a critical check on state power.

Frequently Asked Questions (FAQ)

What is “galamsey”?

Galamsey is the local term for illegal, small-scale gold mining in Ghana, often involving unlicensed operators using rudimentary methods like mercury amalgamation, causing severe environmental pollution.

Is this documentary proof, or just allegation?

The documentary presents direct evidence: undercover video recordings showing Assembly staff and taskforce members discussing and handling payments, photographic evidence of stickers and receipts, and audio recordings where the District Chief Executive appears to authorize the fee structure. This goes beyond匿名 allegations to documented actions and transactions.</p