CPS Backs Calls for Investigation Into Reported US$1.7 Billion DGPP Losses

The Centre for Policy Scrutiny (CPS) has backed calls for an independent investigation into the reported US$1.7 billion losses associated with Ghana’s Domestic Gold Purchase Programme (DGPP).

In a press release, the Centre described the reported loss, estimated at approximately GH¢22 billion, as a matter of significant public interest requiring a comprehensive examination of the programme, its implementation and the financial exposure arising from it.

The CPS said it supports calls by concerned Ghanaians and various groups for an independent inquiry into the circumstances surrounding the reported losses.

The Centre also took note of a fresh motion filed by the Minority in Parliament seeking an investigation into the matter.

According to the CPS, it welcomes the initiative and supports Minority Leader Alexander Afenyo-Markin’s call for the establishment of an Ad Hoc Committee to investigate the reported losses.

The Centre said the proposed inquiry must establish the exact nature and source of the reported losses. It wants the investigation to examine the transactions that generated the losses, the institutions involved, the financing arrangements underpinning the programme and the basis upon which the reported figures were calculated.

The CPS further called for a detailed examination of the respective roles played by the Bank of Ghana (BoG) and GoldBod in the implementation of the Domestic Gold Purchase Programme.

It said the investigation should determine how the responsibilities, financial exposures and transactions of the two institutions were accounted for in relation to the programme.

Beyond establishing the reported financial loss, the Centre wants Parliament to assess whether the DGPP has delivered value that is commensurate with the resources committed to it.

It also wants the broader impact of the programme on Ghana’s foreign-exchange reserves and public finances to be examined.

The Centre for Policy Scrutiny stressed that any investigation must be transparent, evidence-based and bipartisan.

It said the proposed committee should rely on audited accounts, transaction records, contracts and other relevant documentation to establish the facts surrounding the reported losses.

According to the CPS, the parliamentary process presents an important opportunity to resolve competing claims about the reported US$1.7 billion losses and strengthen accountability in the management of Ghana’s gold and foreign-exchange resources.

The Centre is urging Parliament to proceed with the investigation and ensure that its eventual findings provide clear answers to four key questions: what happened, why it happened, who bears responsibility, and what measures are required to prevent a recurrence.

The CPS also raised concerns about the current design of the Domestic Gold Purchase Programme, describing it as “too generous” and arguing that this makes losses inevitable.

The Centre therefore recommended a redesign of the programme to minimise costs and optimise its benefits, warning that the marginal benefits of the programme will not remain positive indefinitely.

The press release was signed by Dr Adu Owusu Sarkodie, Executive Director of the Centre for Policy Scrutiny.

Press Release – CPS BACKS CALLS FOR INVESTIGATION INTO REPORTED $1.7BN DGPP LOSSES