Mineworkers’ Union supports BoG over gold exporters
The Ghana Mineworkers' Union of the Trade Union Congress (TUC) has thrown its weight behind the Bank of Ghana’s (BoG’s) intention to streamline the activities of gold exporters in the country.
The union was of the view that when implemented, the new BoG directive would help to rationalise the activities of gold exporters and also help determine the revenue the country earns from exporting that commodity.
Speaking to the GRAPHIC BUSINESS in Accra, the General Secretary of the Ghana Mineworkers' Union, Mr Prince William Ankrah, said before the directive could take effect, firms in the country which have been issued licences to export gold, known as the Licensed Gold Exporters (LGEs) has placed an injunction to prevent the implementation of the new directive of the central bank.
He therefore articulated the problem associated with the lack of requisite regulations with regard to the export of gold in the country.
According to him, currently, Ghana had no way of verifying the quantity and value of gold being exported by these LGEs hence the introduction of the new directive.
He explained that even though the LGEs are supposed to export their gold only, they have been exporting gold on behalf of whoever has gold to export; which he said was a clear contravention of the law.
He noted that evidence available to the union indicated that most of the gold was exported to India, accompanied by fake mining certificates and the proceeds were sent to Dubai and not repatriated into the country as required.
Mr Ankrah said that activity of the LGEs was one of the factors accounting for the depreciation of the local currency against the major currencies.
Illegal gold export
A reliable source in the gold business, however, told this reporter that Ghana, in 2014, exported about US$ 3 billion worth of gold to India.
That commodity, according to the source, never went through the appropriate channels for it to be taxed.
The Indian experience is one of several others that need to be stopped to enable the country to generate enough revenue to execute its development programmes.
BoG must be firm
Mr Ankrah, for his part, said the activities of the LGEs were one of the factors accounting for the depreciation of the local currency against the foreign major currencies.
He therefore called on the central bank to be firm about the implementation of the new measures for processing documentation on gold exports.
The General Secretary said the new directive was the result of consultations by the BoG, Ministry of Lands and Natural Resources; the Minerals Commission and other stakeholders.
He also said one of the measures was the election of the Precious Minerals Marketing Company Limited (PMMCL) to validate the value of gold leaving the country.
Union’s observation
The union, he said, had observed that the LGEs saw the directive of BoG on the streamlining of their activities as a threat to their unmonitored trading; they had therefore place an injunction on the implementation of the directive, citing an untruth such as the loss of business band revenue should the directive be implemented.
"If these LGEs are doing a legitimate business and PMMC validates the weight of the gold they are exporting, how do these companies lose business and revenue," he quizzed.
"We are therefore following their threat to go to court keenly with the hope that the interest of the country will be placed above the parochial interest of a few Ghanaians and their foreign cronies whose activities are seriously undermining the economy of our country," the general secretary said.
He added that the union was of the view that if the new directive was implemented, the country would make much financial gains from exporting the commodity.
Meanwhile, the Ministry of Lands and Natural Resources, based on the recommendation of the Minerals Commission, has issued licenses to companies to export gold who are now known as Licensed Gold Exporters (LGEs).