Ghana in 2016 reportedly lost a substantial amount of revenue as a result of alleged non-repatriation of export proceeds from a whopping amount of $2.5 billion worth of gold exported through the Precious Minerals Marketing Company (PMMC).
This was made known by the newly-appointed Managing Director (MD) of PMMC, Dr Kwadwo Opare-Hammond to BUSINESS GUIDE.
Dr. Opare-Hammond alleged that PMMC incurred a questionable GH¢50 million under the leadership of ex-President John Mahama’s darling boy, George Abradu-Otoo, from 2013 to January 2017 when the National Democratic Congress (NDC) administration was voted out of power.
According to Dr Opare-Hammond, “Through the non-repatriation of the proceeds, Ghana lost heavily but individuals, especially foreigners made money.”
“$2.3 billion of gold was exported through PMMC in 2016, but not a single dollar was repatriated back to the country as required by the law,” Dr. Opare-Hammond said.
Earlier at the inauguration of a new board of PMMC by the Deputy Minister of Lands and Natural Resources, Barbara Gyasi, Dr Opare-Hammond said that “the company we are taking over can best be described as one that is in “comatose.”
Members of the new board include Samuel Ashong-Narh, Kofi Dametia, Lawyer Komla Onny, Nana Kwesi Awuah, Emefa Obro-Adibo, Mavis Nkansah Boadu, Alhaji Musah Fuseini Cudjoe and Dr Opare-Hammond.
“How can a company sell gold and diamonds and make losses whereas individuals have been doing well as precious minerals traders?” according to him.
Dr. Opare-Hammond’s assertions appears to be in line with this paper’s independent investigations in 2016, which revealed that foreigners, especially Indians and Chinese, had allegedly formed a syndicate at PMMC with their Ghanaian counterparts to export gold through PMMC under the watch of Mr Abradu-Otoo without repatriating the proceeds to Ghana as required by law.
BUSINESS GUIDE’s earlier investigations revealed that there was a smuggling syndicate in the sector which allegedly had links with Mr. Abradu-Otoo at the time and were reportedly exporting through PMMC without repatriating the funds.
A certain Indian man in Ghana, according to unconfirmed reports at the time, was allegedly making nearly $23 million monthly from such ‘fraudulent and questionable’ deals at the expense of the state.
The Association of Gold Exporters of Ghana (AGEG), an umbrella body of local small-scale gold exporters, called on President Akufo-Addo earlier this year to probe the alleged rot at PMMC
AGEGE said there were unfair trade practices and wanton money laundering by Indians, Chinese, other expatriates and some management members of the PMMC under the previous board.
“PMMC is exporting gold on behalf of third parties and these guys are not bringing the money back and this is creating a huge vacuum within the sector. PMMC, no matter how much they ship they don’t repatriate one percent,” Mr. Asante Asare said.
Dubious activities
The paper gathered that the foreigners usually ship the gold first to India or China and then change the documentation of the goods to make their origin rather India or China instead of Ghana before transporting them to Dubai for sale at world market price.
Reaction from former MD
Meanwhile, when DAILY GUIDE contacted Mr. Abradu-Otoo to comment on the alleged $2.5 billion scandal, he described the allegations as “nonsense,” saying “if you want any information go to Minerals Commission, Bank of Ghana, Security and Exchange Commission and PMMC itself.”
Making reference to the alleged GH¢50 million ‘dubious’ debt incurred by PMMC during his tenure, Mr. Abradu-Otoo quizzed “how can such an amount be missing all this while without the knowledge of the internal audit, our external auditors (PKF and Inte)?”
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