According to him, the aim of the policy is to reduce the prices of oil products but the prices of these items are set to increase again this February.
Speaking in a Good Morning Ghana interview monitored by GhanaWeb, Sam George added that just like the Sinohydro deal, which was said to be a barter trade deal, the God-for-Oil policy will end up increasing the country’s indebtedness.
“The whole concept that has been built is simply part of the sloganeering of the NPP. They have built a smoke screen and behind the smoke screen are individual interests aligned with the NPP… at the expense of ordinary taxpayers.
“Dr Bawumia promised us that the God-for-Oil will give us cheaper products but this week, the prices are going up… it is obvious and clear that this God-for-Oil is a scam,” he said.
The MP added that the policy is shrouded with a lot of inconsistencies and a lack of transparency with most of the parties involved in it not known to the people of Ghana.
“We need to know who is the intermediary, and how was the intermediary selected. Who are those we are buying the product from? At what price are were being given the product, are they higher than spot price or are they market premium prices or are they lower than the market premium prices,” he said.
Vice President Mahamudu Bawumia, in November 2022, announced the government’s plan to undertake the gold-for-oil initiative. The deal was hinged on buying oil products with Ghana’s gold instead of the US dollar.
Dr Bawumia, in a post shared on Facebook, explained that the usage of gold to purchase oil would address Ghana’s dwindling foreign reserves as well as reduce demand for US dollars by oil importers.
“It will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” the vice president earlier wrote.
Under the policy, the government believes that using gold to purchase oil products would also bring stability to the exchange rate market and ensure domestic oil operators do not solely depend on foreign exchange to import products.
Watch the interview below: