Combining commercial and regulatory roles risky – Amin Adam on GoldBod

Former Finance Minister Dr. Mohamed Amin Adam

Former Finance Minister Dr. Mohamed Amin Adam has raised concerns over the structural framework of the proposed GoldBod initiative, warning that it could create conflicts of interest.

During parliamentary deliberations on the GoldBod Bill, he criticized the model adopted for the initiative, arguing that it goes against global best practices.

“The model where institutions are established to play multiple roles—combining commercial functions with regulatory oversight—is being discouraged worldwide,” he stated.

He further stressed the importance of separating regulatory duties from commercial operations to maintain effective oversight.

“The best practice now is to separate the commercial role from the regulatory function so that effective oversight can be maintained,” he added.

The GoldBod initiative, introduced by the government, seeks to formalize gold trading, particularly within the small-scale mining sector, while improving traceability to boost Ghana’s international gold reputation.

Under the proposed framework, GoldBod would serve as the sole buyer of gold from licensed small-scale miners through accredited aggregators and would also act as the sole assayer.

Government officials argue that this centralized approach will help curb gold smuggling, strengthen foreign exchange reserves, and stabilize the cedi.

However, Dr. Amin Adam’s concerns reflect broader debates about the governance of the initiative, with critics calling for an independent regulatory structure to prevent conflicts of interest and ensure transparency.