Former Finance Minister Dr. Mohamed Amin Adam has cautioned against the structural design of the proposed GoldBod initiative, arguing that it could lead to conflicts of interest. Speaking in Parliament during deliberations on the GoldBod Bill, he expressed concerns over the model adopted for the initiative.
“The model where institutions are established to play multiple roles—combining commercial functions with regulatory oversight—is being discouraged worldwide,” he stated.
Dr. Amin Adam further emphasized the need to separate regulatory responsibilities from commercial operations to ensure proper oversight. “The best practice now is to separate the commercial role from the regulatory function so that effective oversight can be maintained,” he added.
The GoldBod initiative, proposed by the government, aims to formalize gold trading, particularly within the small-scale mining sector, while improving traceability to enhance Ghana’s international gold reputation.
Under the proposed framework, GoldBod will act as the sole buyer of gold from licensed small-scale miners through accredited aggregators, as well as the sole assayer.
Government officials argue that this approach will help curb gold smuggling, improve foreign exchange reserves, and stabilize the cedi.
However, Dr. Amin Adam’s concerns highlight broader debates over the effectiveness and governance of the initiative, with critics calling for a more independent regulatory structure.
