The Centre for Policy Scrutiny (CPS) says the design of Ghana’s Domestic Gold Purchase Programme (DGPP) is “too generous” and could make losses inevitable, calling for a fundamental review of the programme.

The policy think-tank argues that while the immediate focus should be on investigating reported losses of US$1.7 billion, equivalent to approximately GH¢22 billion, under the programme, attention must also be paid to the structure of the DGPP itself.

According to the CPS, the current design of the programme imposes costs that could undermine the benefits Ghana derives from its domestic gold purchasing arrangements.

It is therefore recommending a redesign of the DGPP to minimise costs and optimise its benefits.

The Centre cautions that the marginal benefits of the existing arrangement will not remain positive indefinitely, suggesting that the financial and economic returns of the programme could deteriorate if its current structure is maintained.

The CPS says a review of the programme should form part of a broader examination of the transactions, financing arrangements and institutional responsibilities associated with the DGPP.

It wants the roles of the Bank of Ghana (BoG) and GoldBOD to be scrutinised, particularly in relation to their respective financial exposures and the accounting treatment of transactions undertaken under the programme.

The Centre also believes the review must assess whether the resources committed to the DGPP are generating value commensurate with the costs, especially in light of the programme’s potential implications for Ghana’s foreign-exchange reserves and public finances.

The call for a redesign comes amid heightened public and political scrutiny of Ghana’s gold purchasing arrangements and the reported financial losses associated with the programme.

The CPS has simultaneously backed calls for Parliament to establish an Ad Hoc Committee to investigate the reported US$1.7 billion losses.

It says such an inquiry should be bipartisan, transparent and based on documentary evidence, including audited accounts, transaction records, contracts and other relevant documents.

For the Centre, the investigation should not only determine what happened and who bears responsibility but also identify structural weaknesses within the DGPP and recommend reforms to prevent similar losses in the future.

The CPS maintains that Ghana’s gold and foreign-exchange resources must be managed in a manner that maximises public value while strengthening accountability and limiting unnecessary financial exposure.