The Minister of Energy and Green Transition John Abdulai Jinapor has voiced serious concerns over the controversial Gold-for-Oil (G4O) programme, citing issues of transparency and governance.
The Minister confirmed that the programme will be scrapped in favor of a more accountable system that ensures public trust and economic efficiency.
Jinapor’s criticisms come in response to mounting concerns about the opaque nature of the initiative.
He argued that the G4O programme, which was originally introduced as a means to leverage Ghana’s gold reserves in exchange for petroleum products, lacks the necessary oversight and accountability mechanisms.
Introduced as an alternative financing arrangement to secure petroleum imports without heavily relying on the U.S. dollar, the G4O programme was designed to stabilize fuel prices and mitigate the effects of exchange rate volatility.
However, over time, it has faced scrutiny from industry experts, civil society organizations, and policymakers for its lack of public disclosure on key operational aspects, including transaction details and the criteria for selecting participating companies.
The Auditor-General’s report further reinforced Jinapor’s claims, flagging several irregularities in the execution of the programme. The findings have raised significant concerns about potential mismanagement and a lack of due diligence in Ghana’s energy sector.
Critics argue that offshore dealings under the programme have been shrouded in secrecy, making it difficult to ascertain the efficiency and effectiveness of the initiative.
Key stakeholders, including opposition parties and transparency advocacy groups, have repeatedly called for the government to release detailed reports on the transactions involved. With these concerns gaining traction, Jinapor stressed the need for reforms.
The energy minister made it clear that the current administration has no plans to sustain the programme in its present form.
“No, we will replace it with a better programme. The current Gold-for-Oil programme we’ve inherited—we will discontinue,” he strongly remarked.
While discontinuing G4O may present legal and logistical challenges, Jinapor acknowledged that the transition would require careful planning, including parliamentary approval and significant regulatory adjustments.
“You need some time to put a workable system in place. If you want to set up a new system, you have to go to Parliament and have some legal battles.
Jinapor’s commitment to reforming Ghana’s energy policies aligns with broader efforts to improve governance within the country’s natural resource sector.
His firm stance on transparency signals a major policy shift and adds to growing concerns about the viability of the Gold-for-Oil initiative in its current form.
As the government moves forward with plans to phase out the programme, stakeholders – including Parliament, energy sector players, and the general public, will be closely watching for developments on the new framework that will replace the G4O initiative.
The impending discontinuation of the Gold-for-Oil programme marks a significant policy shift in Ghana’s approach to fuel procurement.
While the initiative was initially introduced to shield the country from exchange rate volatility and oil price shocks, its alleged lack of transparency has led to growing criticism.
With the Energy Minister confirming plans for a replacement programme, the government will need to ensure that the new system addresses past concerns while maintaining fuel price stability and economic efficiency.
The coming months will be crucial as policymakers, industry players, and advocacy groups work towards a more transparent and sustainable fuel procurement system for Ghana’s energy sector.