The absolute take-over of some illegal Indian gold exporters through the State’s own Precious Minerals Marketing Company (PMMC) is undeniably the reason why the local or indigenous small scale gold exporters are ‘crushing-out’ in the industry and it’s resultant unpredictability and lack of stability in the forex market.
These Indians who by law are not supposed to deal or export gold are now rather leading comfortably in out-pricing their local counterparts because the tax components on the latter’s exports do not afford them the luxury to buy at the price the Indians do.
One of such local small-scale exporters who refused to be mentioned in this report indicated that the Indians are not only out-pricing them but also engaged in money laundering for politicians and other businesses.
He stated that these politicians have several millions sitting in their homes and under their beds which they can’t send to the banks because of how it was acquired so they give it to the Indians who buy gold at high prices and export through PMMC under surrogate companies and further retain all the proceeds out there to be transferred into the foreign accounts of these politicians.
He said, effectively, these Indians are crowding out the local dealers because the expatriates are buying at high prices so the small scale miners are selling to the Indians to the point where even the Association Gold Exporters of Ghana (AGEG) are all over the place raising red flags and complaining to the new government to sit up on these issues.
The exporters argued: “is it any wonder that soon after Christmas entering into the new year till date, the dollar rate has rocketed to the point where it is now at Gh¢4.50 to $1 on the black market?… and if this new government doesn’t sit up and check these illegal Indian exporters then it is definitely set to fail on the fiscal policy front because the statistical figures from the exports and foreign exchange retention is mind boggling”.
From October last year to the beginning of February this year the PMMC has done such exports to the tune of $454,472,521.53 as captured in the table below.
Meanwhile, in an earlier interview with the former MD of PMMC Mr. George Abradu-Otoo who has been supervising the exportation by these foreigners without repatriating at least 80% of the funds to Ghana as by law required, he stated that “PMMC is not responsible for repatriating the funds but rather the Ghana Revenue Authority (GRA)”,… whereas the GRA is also complaining that they are not getting the right information from the PMMC to enable them chase these exporters.
The Exporter said, whereas the local exporters pay 0.5% tax to Minerals Commission as part of Mineral Sustainability Fund and 3% Withholding Tax to the GRA, the PMMC continues to facilitate and supervise this unpatriotic and nation wrecking activities of these illegal exporters which directly weakens the foreign exchange.
AVERAGE MONTHLY SHIPMENTS BY PMMC
MONTH GROSS WT (KGS) PERCENTAGE NET WT (KGS) NET WT (OZS) LME ($) VALUE ($)
OCTOBER 2,316,360.00 92.11 2,133,599.20 68,596.756 1,266.59 86,883,965.01
NOVEMBER 2,767,432.00 91.65 2,536,351.43 81,545.531 1,235.98 100,788,645.59
DECEMBER 2,987,465.00 92.65 2,767,886.32 88,989.545 1,151.50 102,471,461.42
JANUARY 3,174,487.00 93.01 2,952,590.36 94,927.914 1,192.62 113,212,928.24
FEBRUARY 1,421,000.00 91.73 1,303,483.30 41,907.930 1,219.71 51,115,521.27
TOTAL 12,666,744.00 92.32 11,693,910.61 375,967.676 1,208.81 454,472,521.53
However, an attempt by the Executives of AGEG to find a lasting solution through a meeting attended by the chairman of the Association, Mr. Asante Asare and his executives with two of these Indian Exporters called Govind Gupta and Bonnie proved futile because the Expatriates were not ready to back-down and are on record to have stated categorically that nobody can stop them and that if anything happens they will bribe their way out because this is Ghana.
But in a separate interview with both Indians by this reporter, they both denied being gold dealers and stated categorically that they have never met any executive from AGEG in that regard.
Stay tuned for more details.
Source: New Crusading GUIDE