Ranking Member on Energy Committee in Parliament, John Jinapor has asked the government to tread cautiously with its “Gold for Oil” policy.
Mr Jinapor says the policy if not carefully considered, will add to the country's unsustainable debt burden.
According to him, the deal has the form of the Sinohydro deal which the International Monetary Fund (IMF) has compelled the government to add to the country’s debt.
In a Facebook post on Wednesday, January 11, the Yapei Kusawgu MP urged the government to consult widely before making a move.
“The so-called Gold for Oil deal being championed by the Vice-President, in an opaque manner, is nothing but a charade that will end up piling unsustainable debt just like the so-called Sinohydro deal.
“It will be recalled that after insisting that the Sinohydro agreement was a barter deal, the current government has just witnessed an embarrassing spectacle following the insistence by the IMF that the deal is nothing but a loan agreement and must reflect in the national debt accounting.”
The former Deputy Minister for Power added that the policy could lead to the smuggling of Gold in the country.
“This ploy is nothing but an attempt to undervalue the price of Gold as payments will be made in cedis.
“This fire-fighting approach will only result in smuggling of Gold across Ghana's boarders.
“From all the analysis, it is obvious this policy is not well thought through and must be reviewed,” he added.
The Gold for Oil barter deal will see Ghana getting cheaper fuel in exchange for gold.
It is expected to address the country’s “dwindling foreign exchange reserves” to procure oil products.
However, after its announcement, many Ghanaians have asked the government to implement the policy with caution.
Latest Stories
-
My wife sent nudes to her Dubai lover when I was battling kidney disease – Erico
15 mins -
Kudus urges West Ham to eye Ghanaian youngster Emmanuel Danso
18 mins -
Don’t be cowed into silence, defend Ghana’s democracy – Sam Jonah tells journalists
27 mins -
QNET triumphs at PR Awards 2024 with 3 prestigious wins
32 mins -
Dubai Airport slowly re-opening as UAE rainfall persists
32 mins -
Dumsor: Kumasi demonstrators demand immediate release of load-shedding timetable
36 mins -
Transport operators frustrated by long wait to hike fares
36 mins -
MTN FA Cup: Dreams FC’s quarterfinal game against Soccer Intellectuals set for May 1
38 mins -
Enimil Ashon: Season of promises and scholarship for the greedy
45 mins -
Fans react as Taylor Swift’s new album The Tortured Poets Department ‘leaked’
50 mins -
UBA’s role in SME financing: Empowering Businesses for Growth
52 mins -
USAID announces $103m commitment to protect oceans at the 2024 Athens Conference
1 hour -
On-field results have not reflected investment in Hearts of Oak – Vincent Sowah-Odotei
1 hour -
We will evacuate all crude oil from broken-down vessel by close of day – NPA
1 hour -
Ghana’s external debt rework: Deal or no deal?
1 hour