JoyNews has obtained a confidential audit by the Ghana Audit Service revealing how the Minerals Income Investment Fund (MIIF) lost over GH¢708 million in a gold trade deal with Goldridge Refinery Limited (GRL).

This deal costs both the state and the Chamber of Bulk Oil Distributors (CBOD).

The audit of MIIF’s 2024 financial statements shows the Fund entered a five-year, US$30 million agreement with GRL, expecting 15% annual interest.

A parallel arrangement with CBOD required MIIF to advance cedis to Goldridge, which would supply dollars to buy petroleum products.

However, Goldridge failed to deliver the promised dollars.

While the company blamed foreign exchange losses, the audit cited MIIF management’s failure to monitor and enforce the contract.

“The management’s failure to enforce Clause 8 of its agreement with Goldridge — which required the parties to jointly appoint an independent auditor within 14 days of the agreement’s execution to audit the transaction quarterly — and their inability to meticulously monitor, review, and analyse the trade process caused the irregularity.

"The silence of the Investment Advisory Committee regarding this significant investment decision further contributed to this anomaly,” the report said.

Former MIIF CEO Edward Koranteng said the Bank of Ghana’s insistence on using Bloomberg mid-rates caused the foreign exchange losses.

To cover the gap, US$40 million was approved by the Finance Ministry, of which US$26.4 million went to CBOD. The audit warns that MIIF risks losing the full US$30 million investment plus US$2.4 million in accrued interest.

Fidelity Bank confirmed it initially advanced funds to MIIF in cedis, expecting settlement in foreign exchange.

The outstanding amounts were fully settled by December 2024. The Ghana Audit Service has recommended a stress test of the agreement or complete termination and fund recovery.

While the former CEO claimed MIIF had begun recovering the losses, auditors found no evidence of such actions.

The report directed MIIF to recover the full US$40.3 million from Goldridge. If recovery fails, former MIIF Board Chair Prof. Douglas Boateng, ex-Deputy Finance Minister Dr Alex Ampaabeng, ex-CEO Edward Koranteng, and Chief Investment Officer Bubune Sorkpor could be held accountable.

Acting MIIF CEO Justina Nelson told the Public Accounts Committee that all gold trading agreements under the Fund have now been terminated.