The upcoming National Democratic Congress (NDC) government has promised to overhaul the current Gold for Oil program, which is believed to have been introduced by Vice President Dr. Mahamudu Bawumia.
John Dramani Mahama, the party’s flagbearer, criticized the program, launched in 2022 to stabilize the dollar against the national currency using a barter system.
Mahama contends that the initiative has failed to meet its objectives and is clouded in secrecy.
Speaking at an energy sector stakeholder meeting, Mahama pledged to establish a transparent and accountable sector if elected president.
He emphasized the need to scrutinize the opaque implementation of the policy, enhance value addition, and ensure a consistent supply of foreign exchange.
Mahama highlighted plans to enforce financial discipline, involve the private sector in refinery operations, and boost local processing of crude oil to boost export potential.
Despite the government’s promotion of the Gold for Oil program, Mahama expressed his limited comprehension of its details.
Stressing the necessity to investigate the matter, he raised concerns over financial losses, delayed deliveries, and potential liabilities associated with the scheme.
Former Deputy Power Minister John Abu Jinapor warned of the energy sector’s financial strain, estimating a one-billion-Cedi debt connected to the Gold for Oil program.
Jinapor urged Mahama to scrap the unsustainable initiative, citing its failure to achieve its objectives and negative impact on economic indicators.
Furthermore, Jinapor criticized the Vice President and New Patriotic Party (NPP) flagbearer for his involvement in the PDS scandal and questioned attempts to distance him from the issue.
Amid calls for transparency and sustainability, stakeholders including Johnson Asiedu, a former Deputy Governor of the Bank of Ghana, have echoed concerns over the secretive nature and viability of the program.
Asiedu noted the problematic role of the Bank in implementing the program and advocated for alternative approaches if the NDC chooses to proceed with it.