Gold Export Boom: Calls Grow for Independent Oversight Over GoldBod Amid Responsible Sourcing Concerns

As Ghana achieves a historic feat in its small-scale gold export, some experts are asking, “Who watches GoldBod” in their sourcing activities?

The half-year gold exports record achieved this year is raising urgent concerns about the credibility and “cleanliness” of the gold sourced by the GoldBod amid fears that the activity might fuel the menace of illegal mining, widely known as galamsey.

Denis Gyeyir, Country Manager for the Natural Resource Governance Institute (NRGI), has argues that GoldBod is operating without adequate external checks, calling it a dangerous precedent for resource governance.

Although he admits that GoldBod has an internal responsible sourcing policy, he is not convinced that the board can be a better check on itself.

He tells The High Street Journal that there is a need for an independent body to act as a check on the activities of GoldBod. The current arrangement, he says, is akin to a regulator and a player at the same time.

“GoldBod has a responsible source in policy, but someone has to monitor and ensure that the policy is applied very well. GoldBod cannot do that on their own. You cannot be the player and the referee at the same time,” he indicated.

The budget revealed that, for the first time in Ghana’s history, gold exports from the small-scale sector surpassed those from the large-scale sector. This development has triggered alarm among civil society actors who fear it could fuel illegal mining (galamsey) activities under the guise of official trade.

Small-scale mining has long been associated with environmental degradation, unsafe working conditions, and weak regulation.

GoldBod, designed as a central aggregator to purchase gold, primarily from the small-scale sector, is tasked with ensuring that all gold it buys is responsibly sourced. However, Gyeyir says the lack of an independent monitoring institution makes this promise hollow.

He argued that, “the question we were raising when we raised the issue of GoldBod being a player and a regulator at the same time. you are buying gold. Yet, you are supposed to ensure that it is responsibly sourced. If you don’t do that, what happens? Who is supposed to hold you accountable? You don’t have any institution like that at the moment. For me, the issue of oversight on GoldBod is really important.”

He revealed that there were earlier proposals from stakeholders to establish a PIAC-like body, modeled after the Public Interest and Accountability Committee which oversees Ghana’s petroleum revenues, to provide independent scrutiny of GoldBod’s operations.

Unfortunately, he said, those proposals were rejected for reasons that are quite disappointing.

He recounted that, “We pushed for a PIAC-like structure for GoldBod, but it was rejected for a couple of reasons, which is really a shame. My main point is that we need to exercise a bit of oversight on GoldBod beyond what is currently used. It appears that there is no oversight at the moment. It is better to oversight and ensure that they are operating within their own borders.”

Critics argue that without such oversight, Ghana risks damaging its environmental integrity and international reputation while undermining the very purpose of the GoldBod initiative.

If the gold is not traceable to licensed, responsible sources, then the government could be accused of institutionalizing illegal mining under the cloak of economic stability. For Gyeyir, it is not too late for the country to institutionalize transparency, traceability, and certification in the sourcing of GoldBod.

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