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Ghana has been identified as a significant hub for the illegal trafficking of gold, according to a company that focuses on safety standards. Their data map on illicit trading revealed that Ghana, Sudan, Ethiopia, and Uganda are major routes for illegal gold trading, with Switzerland, the United Arab Emirates, and India being common export destinations. In a report on the illicit global economy, Origin. All highlighted that local gold refineries are being exploited for laundering gold from illegal sources in an artisanal mining sector that involves millions of people, forced labor, and high risks.
An assessment of trade data between Ghana and its three major gold trading partners – Switzerland, India, and the United Arab Emirates – revealed that over $6 billion worth of gold exports from Ghana remained unaccounted for between 2013 and 2016. This figure is expected to increase significantly if all export and import data with Ghana’s gold trading partners are examined. For instance, the gold import-export difference between Ghana and Switzerland alone amounted to over $3 billion during that period. While Switzerland’s gold import figures showed that they imported nearly $7 billion worth of gold from Ghana, Ghana’s official records showed an export of just over $3 billion.
As the Ministry of Lands and Natural Resources states, Ghana reportedly loses over $2 billion annually in unpaid royalties and taxes on gold smuggled out of the country. All have expressed concern that illicit gold mining is becoming a lucrative source of income for cartels, criminal gangs, and non-state armed groups. The mineral sector accounts for about 17% of global threat and conflict finance, compared to drugs at 28%.
The report also revealed that capital flight from the African mineral sector had been estimated at $50 billion, with a total range of $24 to $61 billion, compared to illicit oil exports of $7.65 to $37.5 billion. Illegal annual exports from extractive industries in Africa are estimated to be between $31 to $98 billion, compared to $32 to $62 billion from Latin America, with companies typically paying only 0 to 4% tax on official amounts.
These findings come in the wake of an investigative report by Al Jazeera, which has raised questions about the possible complicity of some Ghanaian officials in illicit gold trades and money laundering activities orchestrated by a group of mafias controlling the gold industry in Africa.
A gold trader exposed in Al Jazeera’s investigative documentary, Alistair Mathias, claimed to smuggle $40 million worth of gold from Ghana monthly. Mathias described as a financial architect who builds money laundering schemes for corrupt politicians, alleged that President Akufo-Addo is his friend and lawyer. Akufo-Addo, however, has denied any recollection of acting as Mathias’ or his company’s lawyer.
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Source: Omanghana.com
