Ghana’s premiere gold marketing and jewellery manufacturing company, the Precious Minerals Marketing Company, (PMMC), generated over GHC15.2 million in tax revenue to the government of Ghana in the first six months of 2020. PMMC has also paid off its entire foreign legacy debts of over $2.5m as of August 2019 although the cedi legacy debts continue to pose a major challenge to the company, a challenge which the Board and Management are determined to resolve. This solid performance has improved the financial and investment profile of PMMC, which had been losing revenue and ensconced in a cycle of bad management by previous administrations.
The fortunes of the company were turned onto a positive path in 2017 with the appointment of a new Board of Directors by President Nana Akufo-Addo, chaired by Hon. Kiston Akomeng Kissi, who took over and managed a near moribund company, saddled with huge debts and was struggling to pay staff salaries.
The main priority of the new Board of Directors therefore, was to find innovative solutions to reduce the financial liabilities of the company and find new streams of revenue to ensure that PMMC eventually becomes a profitable company. Other members of the Board included Hon. Kwadjo Opare-Hammond (Managing Director, now deceased), Nana Akwasi Awuah, a legal practitioner, Alhaji Musah Fuseini-Codjoe, Samuel Evans Ashong-Narh, Janet Emefa Obro-Adibo, Kofi Mensah Demitia (who became Ambassador to Togo) and Hon. Mavis Nkansah-Boadu, MP (now Deputy Minister for Roads and Highways).
Among the early initiatives the Board took was to assert its role as the National Assayer. By this, the Company was mandated to assay all gold leaving Ghana via export. As the National Assayer therefore, PMMC provides the Government of Ghana revenue assurance in terms of the volumes and values of gold exports. This initiative, while providing critical value for government, created a new revenue source for the company, thereby improving its financial situation.
In line with its role as National Assayer, PMMC also commenced active engagement with Ghana’s Central bank, the Bank of Ghana, to fashion out mechanisms and protocols for PMMC to act as the official Assayer in the Bank’s Domestic Gold Purchase Program (DGPP). This initiative came to full fruition in June 2021 when the Bank commenced implementation of the DGPP which has so far seen it purchase about 100kg of gold to shore up Ghana’s gold reserves.
It is no secret that Ghana’s gold trade industry can be chaotic and punctuated by many fraudulent schemes. Many unsuspecting businessmen have been sold many ounces of gold and diamond articles that have turned out to be fake on the open market. This causes a lot of investor anxiety and wanes business confidence in the precious minerals trade in Ghana.