COMAC Demands Independent Audit of Gold-for-Oil Program Amid Financial Concerns-GHANA

The Chamber of Oil Marketing Companies (COMAC) is urging for an independent audit of the Bulk Energy Storage and Transportation (BEST) Company’s performance within Ghana’s Gold-for-Oil (G4O) initiative. This call comes as doubts rise regarding the program’s ability to stabilize fuel prices and alleviate foreign exchange pressures as originally intended. Despite the government’s goal of stabilizing domestic fuel prices, COMAC argues that the program has only met 30% of the nation’s petroleum needs and has had little impact on improving forex stability.

The G4O initiative, which uses Ghana’s gold reserves to procure refined petroleum, has also faced criticism for the involvement of BEST, a company with no prior experience in oil trading. COMAC claims that this has led to substantial financial losses and the risk of fuel shortages. These issues have further fueled concerns about the program’s effectiveness and its potential long-term impact on the country’s economy.

In light of these challenges, COMAC has proposed a shift from the Gold-for-Oil model to a Gold-for-Forex (G4F) model, where gold reserves would be used to stabilize the foreign exchange market. This approach is seen as a way to ensure oil importers have access to adequate foreign exchange liquidity, which could help mitigate the ongoing forex challenges.

Furthermore, COMAC is calling for comprehensive reforms in Ghana’s downstream petroleum sector. These reforms include greater investment in domestic refining capacity, better fuel storage and distribution networks, and enhanced regulatory oversight to address inefficiencies. While the government has not yet responded to these recommendations, industry experts suggest that a detailed review of BEST’s financial performance could be crucial in shaping Ghana’s future strategy for managing its natural resources.

Source: CITI NEWSROOM