Gold for Oil: First Consignment Bought With Sale From Gold – Gov’t

The Government has confirmed that the first consignment under the Gold for Oil Policy was actually bought with cash. 

Reports were rife that the first consignment of oil was purchased with cash from the Bank of Ghana.
Speaking on Morning Starr with Naa Dedei Tettey, Deputy Energy Minister, Andrew Egyapa Mercer confirmed that the first consignment of refined oil under the infamous gold for oil programme was bought with cash and not exchanged with gold.

The Deputy energy minister further admitted that indeed the purchase was not done through the barter with Gold but with cash.

He however clarified, the cash was not from Bank of Ghana, but from the sale of gold.

“Further, there are some that deal in oil and petroleum sometimes, so if you give them gold what are they going to use them for? So, the program that we are running is actually spoon-fed because we need to consider our ability to force products from the market and either liquidate the gold to pay or swap directly for oil. So that we are not limited in terms of the suppliers that we are dealing with. How is that problematic? In any event what is the issue really?

“So really I am wondering why we are on a tangential issue of whether it is gold for oil barter or it is gold sold to procure oil. At the end of the day what the Ghanaian consumer wants is he wants to buy fuel when he gets to the pumps without going to stand there for hours. The Ghanaian consumer wants a competitive price that will enable him to have value for money,” the deputy Minister added.  

However, the Minority in Parliament has called for the suspension of the programme until full disclosure and consultation with stakeholders are done.