The Institute of Economic Research and Public Policy (IERPP) has formally invoked Ghana’s Right to Information (RTI) law to demand full disclosure from the Ghana Gold Board (GoldBod) over an alleged GH¢2 billion advance payment guarantee that underpinned the appointment of Bawa Rock Company Limited as a sole gold aggregator.

The RTI request, filed at GoldBod’s headquarters on Kinbu Road, follows public comments attributed to Sammy Gyamfi, a leading figure associated with the GoldBod policy framework, suggesting that Bawa Rock Company Limited provided a GH¢2 billion advance payment guarantee in support of GoldBod’s gold aggregation or trading arrangements.

According to IERPP, the magnitude of the claimed guarantee raises serious concerns about compliance with Ghana’s banking laws, public financial management rules, and international accounting standards.

In its petition, IERPP situates the issue within the broader regulatory framework governing banks and financial guarantees in Ghana.

Under Section 9 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), banks are required to maintain a minimum capital adequacy ratio of 10 percent.

In addition, Section 62 of the same Act imposes a single obligor limit of 25 percent of a bank’s net worth.

Based on these provisions, the policy think tank argues that for any bank to validly issue or back a GH¢2 billion guarantee, the institution’s net worth would need to be at least GH¢12 billion if the guarantee were fully secured, and as high as GH¢30 billion if it were unsecured.

IERPP maintains that available financial records indicate that no bank operating in Ghana currently meets those thresholds without breaching statutory capital adequacy or obligor limit requirements.

This, it argues, casts doubt on the plausibility of the alleged guarantee and raises questions about whether the arrangement complied with Sections 29 and 62 of Act 930.

Beyond domestic banking law, the Institute also points to international financial reporting obligations.

Under IFRS 9, a financial guarantee is classified as a financial liability because it creates a binding obligation on the issuer to make payments in the event of default.

IERPP argues that this classification has significant implications for how such a guarantee should be recognised, disclosed, and managed, both on GoldBod’s books and within the broader public finance architecture, particularly if the State or the Bank of Ghana bears any contingent liability.

Against this background, IERPP’s central question to GoldBod and the Bank of Ghana is straightforward but far-reaching: which financial institution or institutions provided the GH¢2 billion advance payment guarantee that GoldBod relied on as justification for appointing Bawa Rock Company Limited as a sole aggregator? The Institute insists that the public deserves clear answers, especially given the potential exposure of public funds and sovereign risk.

In its detailed RTI request made pursuant to Article 21(1)(f) of the 1992 Constitution and the Right to Information Act, 2019 (Act 989), IERPP is seeking certified true copies of a wide range of documents.

These include the principal contracts or memoranda of understanding between GoldBod and Bawa Rock Company Limited, any addenda or side letters linked to the alleged guarantee, and legal opinions obtained to justify the legality of the arrangement and Bawa Rock’s capacity to provide such a guarantee.

The Institute is also demanding clarity on the precise nature and structure of the GH¢2 billion guarantee, including whether it was bank-backed, a corporate guarantee, cash-backed, or merely a contingent or promissory obligation.

Further requests cover records showing whether the amount was actually paid, placed in escrow, pledged, or made conditional on future performance.

In addition, IERPP is seeking disclosure of the source of funds underpinning the guarantee, details of any risk-sharing or indemnity arrangements, and documentation showing whether the Bank of Ghana or the Consolidated Fund bears any direct or contingent liability.

Governance and procurement issues are also central to the request, with demands for board minutes, resolutions approving the sole-sourcing of Bawa Rock Company Limited, and any conflict-of-interest declarations by GoldBod officials.

Finally, the RTI application calls for records on how the GH¢2 billion guarantee was treated in GoldBod’s accounting books, as well as correspondence with key institutions such as the Ministry of Finance, the Auditor-General, the Bank of Ghana, or the International Monetary Fund.

IERPP grounds its request in the public interest provisions of Act 989, arguing that the information sought directly relates to the management of public resources, the State’s exposure to financial risk, and transparency in Ghana’s gold aggregation and reserve operations.

The Institute has requested that the information be provided electronically within the statutory 14-day period.