Gov’t To Introduce SpecialBill For Gold Transaction

Licensed gold dealers in Ghana will soon heave a sigh of relief, as government is set to introduce a special bill that would aid the transaction, without moving around with huge cash.

The idea was to minimize risk factors in the sector and also ensure safety, as far as, carrying huge physical cash around is concerned.

According to the Precious Minerals Marketing Company (PMMC), measures are being put in place to that effect; disclosing, Bank of Ghana (BoG) is being engaged for that purpose.

Speaking at a workshoporganized by the national assayer in Accra, the Managing Director (MD), Nana Akwasi Awuah, assured industry players that, government recognizes the risks involved in the gold business and, therefore, putting in place the necessary measures to make it safer.

According to MrAkwasi Awuah, PMMC has already proposed to the Central Bank, a separate cash system solely for gold business, to end the act of carrying huge amounts of money around.

He said the move has become necessary because, under the current system, gold dealers who he says move with huge cash, easily become targets for criminals.

“It’s true you have so many challenges. You people have money, we know and you move with a lot of money, and once you move with lot of money, you are easy targets.

It can be done by someone close to you that will give the hint or the bank you operate with, where someone maybe monitoring you and giving information that you come for huge amounts of cash.

So, we have proposed something to government to introduce special bill of exchange for gold dealer, so that, instead of carrying one million in 200 Cedis notes in large and heavy quantities, they give you that (Special Bill of Exchange) leaflets, maybe five”, he said.

He added; “When you have such [bill], nobody will target you that you have money. If you are transacting business too, it will be accepted because it is recognized. It will be like the 10 Cedis and 20 Cedis currently in circulation.

When Zimbabwe’s inflation went so high, they had 10-million-dollar notes, so it shows that government can issue some money solely for gold transactions and that will mean that you won’t have huge amounts of money moving up and down.

Your security is very important, so it is something we have proposed to government to look at, to help the sector and all of you”.

At the 2-day event held in Accra to introduce and educate licensed gold dealers on the PMMC reviewed terms and conditions of the gold business, the Company said the workshop forms part of government’s efforts to sanitize and streamline activities, within the downstream sector.

It is also, to ensure that gold produced in Ghana meets internationally-accepted standards, so that they will not be blacklisted, when it leaves the shores of the country.

Nana Akwasi Awuah said, PMMC is partnering another state institution Minerals Commission, to embark on the initiative termed as ‘Responsible Sourcing’ funded by the World Bank. This initiative demands that gold produced in Ghana is done, devoid of environmental degradation, conflicts, child labour among others.

He said since February 2022, gold trading abroad has taken a totally different dimension, demanding strict adherence to certain regulations, almost like the diamond business.

As part of the review measure, fees for registering for license as well as renewal, have all been reviewed upwards. Again, licensed gold dealers will from October 2022, be required to file returns every month.

A compliance and monitoring unit, has also been set for this purpose.

On government latest decision to buy gold, locally, Nana Akwasi Awuah hinted, PMMC is set and has the capacity and will be doing so, for two reasons.

The precious mineral, will be bought for the BoG and also feed the soon-to-be commissioned gold refinery Royal Ghana Gold, located at Diamond House in Accra.

The MD assured PMMC will purchase this gold at no discount fee, but at spot price.

Board Chairman of PMMC Kingston AsomaningKissi, who was at the opening of the workshop on Tuesday, said the Company is on course to become the biggest gold buyer and producer in the world.

MrKissi, who is a one-time Member of Parliament (MP) for the Akwatia constituency and a licensed gold buyer with over 30 years’ experience, while encouraging women to venture into the gold purchase business, also proposed the necessity of gold buyers to form an association, so that, the body can speak for the interest of members and promote their agenda.

He also joined calls for the dealers, to retain some amount of the purchased gold from the field, so they sell them to PMMC.

Source: Anchorghana