Vice President of IMANI Africa, Bright Simons, has questioned the capacity of the Ghana Gold Board (GoldBod) to effectively curb gold smuggling, arguing that the problem is rooted in systemic inefficiencies rather than the absence of new institutions.
Speaking in an interview with Channel One TV on Monday, January 5, Mr Simons said gold smuggling is largely driven by attempts to avoid taxes and the costs associated with operating within the formal economy.
He noted that some actors deliberately choose illegal routes to escape regulatory obligations.
According to him, tackling the challenge requires far-reaching reforms aimed at improving efficiency and reducing incentives for illegal activity, rather than relying on institutional restructuring alone.
He maintained that the mere creation of GoldBod would not automatically close the loopholes exploited by smugglers.
“The only way to stop that person [from smuggling gold] is to do massive reform of efficiency. You cannot solve smuggling with institutional innovation like GoldBod. The gaps exist, and therefore there’s smuggling,” he said.
Mr Simons warned that unless underlying inefficiencies within the system are addressed, gold smuggling will continue to thrive despite new regulatory frameworks, stressing the need for comprehensive reforms to make formal participation more attractive and cost-effective.
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Source: www.myjoyonline.com