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.