Audio By Carbonatix
The Institute of Economic Research and Public Policy (IERPP) has formally demanded full documentary disclosure from GoldBod and relevant state institutions over an alleged GH¢2 billion advance payment guarantee linked to Ghana’s gold aggregation and trading arrangements.
Addressing a press conference at the Ghana International Press Centre on Tuesday, January, 27, the Executive Director of IERPP, Prof. Isaac Boadi, described the matter as one of “national importance,” warning that any attempt to downplay the transaction would amount to economic recklessness.
“GH¢2 billion is not a trivial figure. It raises fundamental questions about public financial exposure and sovereign risk,” Prof. Boadi stated.
Triggered by public admission
The press briefing followed what IERPP described as a public admission attributed to Mr. Sammy Gyamfi, a leading official associated with the GoldBod policy framework, indicating that Bawa Rock Company Limited provided a GH¢2 billion advance payment guarantee in connection with GoldBod’s operations.
IERPP said the admission necessitated urgent clarification, transparency, and accountability, particularly given the strategic importance of gold to Ghana’s economy.
Demand for documentary evidence
Prof. Boadi announced that IERPP had formally requested certified true copies of documents across five key areas, including the contractual basis of the transaction, the nature of the guarantee, the source of funds, governance approvals, and financial treatment.
Among the documents requested are the principal contracts, MOUs, or agreements between GoldBod and Bawa Rock Company Limited; any side letters, escrow agreements, or comfort letters linked to the alleged guarantee; and egal opinions addressing the legality of the arrangement and compliance with public financial management laws.
IERPP also demanded clarity on whether the GH¢2 billion guarantee was bank-backed, corporate, cash-backed, or merely contingent, and whether the amount was “actually paid, placed in escrow, merely pledged on paper, or conditional on future performance.”
Banking and fiscal red flags
Providing a financial reality check, Prof. Boadi warned that under International Financial Reporting Standards (IFRS), guarantees constitute off-balance-sheet exposures and become financial liabilities once triggered.
“IFRS treats guarantees as financial liabilities, requiring the issuer to reimburse the holder,” he explained.
This, he said, raised a critical unresolved question:
“Which financial institution issued or backed the alleged GH¢2 billion advance payment guarantee?”
IERPP further referenced Ghana’s banking laws, noting that under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), banks are required to maintain a minimum Capital Adequacy Ratio of 10 percent and observe a 25 percent single obligor limit.
Based on publicly available banking data presented at the press conference, Prof. Boadi argued that no individual Ghanaian bank could prudently issue such a guarantee without breaching regulatory thresholds.
“The net worth and asset positions of major Ghanaian banks strongly suggest that no bank can prudently issue a GH¢2 billion guarantee without breaching capital adequacy requirements or violating prudential exposure limits,” he said.
Right to information and public interest
IERPP grounded its demands in the Right to Information Act, 2019 (Act 989), citing Sections 1, 2, 18, and 23, and stressing that the matter directly concerns the management of public resources and potential exposure of the State to financial risk.
Prof. Boadi cautioned that any refusal to disclose information must be “strictly justified under law,” adding that partial disclosure through severability should apply where necessary.
Not a partisan exercise
Prof. Boadi further rejected any suggestion of political motivation, stressing that the intervention was purely constitutional and in the national interest.
“This is not a partisan exercise,” he said. “It is a constitutional demand for openness, accountability, and protection of the public purse.”
He added that Ghanaians deserve clear answers on how strategic national assets are managed, who bears the financial risk, and whether due process was followed.
IERPP indicated that it would keep the public informed of developments, including any failure by relevant institutions to comply with the law.
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