Features
The National Assayer – PMMC’s role in providing revenue assurance to government on gold exports
On 26th January, 2022, www.myjoyonline.com published a story captioned “Ghana loses over $2bn in taxes to undervaluation of gold exports”. According to the story, these losses were identified through a research by a consortium including the Institute for Statistical, Social and Economic Research (ISSER). It is observed that the research, which covered 2011 to 2017, does not disclose which sector it focused on – large scale or small scale. This distinction is important because the two have separate tax regimes.
Undervaluation of Gold
Upon reading the news story, the press release by the research team and the presentation of the research findings, it is difficult to ascertain the basis for the claim of undervaluation.
Undervaluation of a commodity such as gold presupposes that there is a true standard value against which the commodity can be measured. The standard value of gold is easily verifiable. Within the international market, bodies such as the London Metal Exchange (LME) are reputed indicators of the global market price for gold. It is important to mention that the prices as set by the LME on a daily basis are for refined gold of 99.99 per cent 24 karats purity. Gold exported from Ghana are unrefined and hence would not attract the same price as set by the LME.
Within the precious minerals industry, it is trite knowledge that gold values are dependent on weight and purity. Hence, a kilo of unrefined gold would not have the same price as a kilo of refined gold. Similarly, two kilos of 14karats gold could be less expensive than a kilo of 22 karats gold. Given that gold exported from Ghana are in unrefined doré form with a purity range of about 21 carats to 22.5 karats, without an independent valuation exercise, it will be misleading to say that such gold doré has been undervalued using the prevailing world market price as benchmark.
Valuation of Gold
As earlier indicated, two variables go into the determination of the value of gold – weight and purity. Measuring the weight, which is done with a scale, is quite easy and straightforward. Determining the purity of gold is through a scientific process known as assay.
There are various methods of assay – non-destructive methods such as X-ray Fluorescence (XRF), Specific Gravity or Density, and Ultrasonic Testing; and the destructive method which includes the Cupellation (Fire Assay).
Once the weight and purity are identified, a calculation is done using the world market price to ascertain the true estimated value of the gold doré.
From the foregoing, therefore, it is deductible that to substantiate a claim of undervaluation, it is important to know the weight and purity of what was exported as well as the then prevailing world market price of gold. Undervaluation may arise where there is a false declaration of the weight and purity of the gold doré which is being exported. The report, however, does not indicate whether there were any such findings of false declarations of weight and purity.
As earlier mentioned the research fails to disclose which sector of the gold mining industry it focused on – small scale or large scale. This is important because the two have distinct tax regimes. Whereas the large scale sector has a tax regime which includes royalties and corporate tax, the small scale sector presently attracts a withholding tax of 1.5 per cent on gold exports.
PMMC’s Mandate as National Assayer
In 2017, President Akufo-Addo directed that government identifies a way to independently verify gold exports in order to ensure that the country is obtaining maximum revenue for this precious mineral resource. Consequently, under the leadership of Hon. Kiston Akomeng Kissi, PMMC Board Chairman and driven by Hon. Kwadjo Opare-Hammond (may his soul rest in peace), then Managing Director of PMMC, stakeholder engagements began towards the implementation of this directive. There were several engagements with the Ghana Chamber of Mines and the Association of Gold Exporters, now Chamber of Bullion Traders, Ghana to agree on modalities for the smooth take-off of the National Assay Programme. Eventually, with the support of the Vice President and the then Sector Minister, in February 2018, PMMC officially commenced operations as the National Assayer with the mandate to assay all gold earmarked for export from Ghana.
The National Assay Laboratory located at the Kotoka International Airport, from where PMMC carries on its operations was set up through the support of the Minerals Commission with funding from the World Bank. The Assay Lab is fitted with three non-destructive assay equipment – an XRF Machine, a Specific Gravity equipment and Ultrasonic Testing device.
PMMC’s mandate as National Assayer covers both the small scale and large scale mining sectors. As National Assayer, PMMC independently verifies the weight and purity of the gold doré being exported in order to ascertain its value. The value as determined by PMMC enables the Ghana Revenue Authority (GRA) to exact the requisite taxes such as the 1.5 per cent withholding tax on the gold doré before export.
For the small scale sector, after the assay analysis by PMMC, the export is managed through the ICUMS systems with close supervision by the Central Bank. Exports are done by duly licensed export companies who are required to repatriate 80 per cent of the proceeds back to Ghana within thirty (30) days. Failure to show proof of repatriation of export proceeds comes with sanctions such as prevention from doing further exports and upon persistent breach, revocation of export licence and possible prosecution.
For the large scale sector, whose tax regime is entirely different from that of the small scale, PMMC has field officers who observe the smelting of gold in their gold rooms. From the gold room, the weight of the bars are recorded and samples taken. The samples are transported via helicopter to the National Assay Lab where PMMC conducts the assay analysis to determine the purity and by extension the values of the gold doré which are to be exported. This provides an independent verification of the export values thereby providing revenue assurance to government. Periodic reconciliations are carried out between PMMC and the large scale mining companies represented by the Ghana Chamber of Mines.
It is worth mentioning that since the commencement of the Domestic Gold Purchase Programme by the Bank of Ghana in June 2021, PMMC as National Assayer has been providing this essential service to the Central Bank by independently verifying the weight, purity and by extension value of gold supplied for purchase.
Digitalisation of National Assay Laboratory
Since the commencement of the National Assay Programme in 2018, there have been consistent efforts to make improvements so as to ensure maximum efficiency of the programme. In 2021, again under the leadership of Hon. Kissi, with support from the Sector Minister, Hon. Samuel A. Jinapor and driven by the present author, the National Assay Programme was digitalised. Digitalisation now made it possible to generate assay certificates which bore unique security features making it difficult to forge to facilitate the dubious elaborate schemes of gold scammers.
Digitalisation has also now made it possible to monitor in real time, gold exports passing through the National Assay Laboratory. It has improved collation of timely data on export figures and revenues in order to aid effective national economic planning.
The digitalised National Assay Lab, which will be officially launched this month, will be open and accessible to key stakeholders including the President as the Constitutional Trustee of Ghana’s mineral resources, the Vice President as Head of Economic Management Team, the Minister of Lands and Natural Resources, the Minister of Finance, the Governor of the Bank of Ghana, and the Commissioner General of the Ghana Revenue Authority.
PMMC continues to find ways to improve upon the execution of this important mandate which is critical for securing the much-needed revenue from the precious minerals industry for national development.
By Nana Akwasi Awuah, Managing Director, Precious Minerals Marketing Company (PMMC)
Features
Preventing the brain’s melting point with BOS
The human brain is a complex and delicate organ, susceptible to damage from various factors, including extreme temperatures.
The brain’s melting point, also known as the temperature threshold beyond which brain tissue begins to degrade, is a critical concern for individuals seeking to maintain optimal cognitive function.
Fortunately, the Brain Operating System (BOS) offers a revolutionary solution to prevent the brain’s melting point.
Understanding the brain’s melting point
The brain’s melting point refers to the temperature threshold beyond which brain tissue begins to degrade, leading to irreversible damage.
This temperature threshold varies depending on individual factors, such as age, health, and environmental conditions. However, research suggests that the brain’s melting point is approximately 104°F (40°C) to 107°F (42°C).
The role of BOS in preventing the brain’s melting point
BOS, a cutting-edge technology, plays a crucial role in preventing the brain’s melting point. By leveraging advanced neural interfaces and artificial intelligence, BOS monitors and regulates brain temperature, ensuring that it remains within a safe range.
How BOS prevents the brain’s melting point
BOS prevents the brain’s melting point through several mechanisms:
1. Temperature regulation: BOS continuously monitors brain temperature, adjusting neural activity to maintain a stable temperature.
2. Heat dissipation: BOS enhances heat dissipation through increased blood flow and sweating.
3. Neuro protection: BOS protects neurons from heat-induced damage.
Benefits of BOS in preventing the brain’s melting point
The benefits of BOS in preventing the brain’s melting point are numerous:
1. Prevents brain damage: BOS prevents brain damage caused by excessive heat.
2. Maintains cognitive function: BOS ensures optimal cognitive function by maintaining stable brain temperature.
3. Enhances brain resilience: BOS enhances brain resilience to temperature fluctuations.
Real-World applications of BOS
BOS has various real-world applications:
1. High-performance computing: BOS enables high-performance computing by maintaining optimal brain temperature.
2. Medical applications: BOS has medical applications, such as treating heat-related illnesses.
3. Space exploration: BOS is crucial for space exploration, where extreme temperatures pose a significant risk.
Conclusion
BOS is a revolutionary technology that prevents the brain’s melting point, ensuring optimal cognitive function and overall well-being. By leveraging advanced neural interfaces and artificial intelligence, BOS monitors and regulates brain temperature, protecting against heat-related damage.
Glossary:
1. BOS: Brain Operating System.
2. Brain’s melting point: Temperature threshold beyond which brain tissue begins to degrade.
3. Neural interface: Connects human brain with digital devices.
Contact Information
virginvtech@yahoo.com
Additional resources:
1. BOS research: Explore scientific studies.
2. Neural interface resources: Discover books and articles.
3. Brain-computer interface communities: Join online forums.
Future directions
As BOS technology continues to evolve, we can expect:
1. Improved temperature regulation: Enhanced temperature regulation mechanisms.
2. Increased cognitive enhancement: Advanced cognitive enhancement capabilities.
3. Expanded applications: New applications in various fields.
By harnessing the power of BOS, individuals can safeguard their brain health and maintain optimal cognitive function, even in extreme environments.
By Robert Ekow Grimmond-Thompson
Features
Lotto wahala and Tuobodom palaver
In Sikaman lotto is not a game. It is a profession, a noble career which people aspire to. It is the highest paying profession after armed robbery and the most widespread job on this side of the Atlantic.
In places like China, lotto is a disease that has no cure. Once you are infected, no doctor on earth can cure you. May be Kofi Larteh, Ghana’s most celebrated magician, can help ease the symptoms, but no definitive cure will be forthcoming.
Coming back to Sikaman, lotto has been the financial messiah of many. That is how people look after their large families, pay school fees, marry two wives and do their own ‘monkey things.’
If you are very poor and you win a lottery, chances are that you will die before you even collect the money. You’ll die out of excitement or you’ll start day-dreaming in the streets and an articulated truck will hit you.
As such, very heavy wins are not recommended for poor people, lest they get listed too soon in the obituary columns.
The sad story is told of a heavy-duty caterpillar driver who had a very heavy lotto windfall of several millions, his first big win after several years.
CATERPILLAR
He was driving the caterpillar home when he saw his son running towards him, shouting. “All your numbers have dropped! All your numbers have dropped! He could not believe his ears.
All the four numbers he had staked had dropped and his son, who had gone to stake them for him, was himself over-excited. The poor caterpillar man just could not handle the good news. He suddenly stepped on the brakes and the caterpillar jolted him a trifle too violently, throwing him off. He landed right in front of the still moving heavy-duty machine and it crushed him flat.
I don’t think the bloke would have died if he had won a smaller amount. Sometimes too much cash is not good for the health.
Seldom, people get too confident and that can also result in a wake-keeping, like that of a man who used his lifetime savings and borrowed extra money to crack the machine with a two-sure that the compiler must compulsory drop or the world will end.
Even the shadows of the numbers or their counterparts were nowhere near the winning numbers. His shock-absorbers crumbled under the weight of the heavy disappointment. He crashed to the floor and started foaming at the mouth. He was declared dead on arrival at the nearest clinic.
WINDFALL
Recently, there was a countrywide lotto windfall, and in Kumasi it was more than a festival. Most stakers had between ¢30m and ¢40 million on two-sure that the lotto magicians had predicted at least three weeks earlier,
Kejetia chop bars were besieged with overnight millionaires, carrying huge appetites induced by Opeimu Bitters popularly called Opeimu Peters. All the meat and mudfish got sold out within an hour and procurement agents had to double up to restock.
While some were celebrating, others were weeping and gnashing teeth. The problem was that, three weeks beforehand, the two sure numbers were declared by all the lotto sorcerers, dreamers, magicians, tellers and all the self-appointed and self-promoted forecasters.
Everybody including 10-year-olds, who staked and lost. The following week, they were advised to continue staking. The faithful did continue but the faithless stopped. All of them lost. In the third week or so, a good number of confident stakers had lost faith in the two numbers. That was when the number landed.
So the windfall was for only those who had the unshakeable faith in the numbers. See what faith can do? It can move dollars. Don’t waver, so saith the holy scriptures.
The faithless indeed gnashed teeth. The winners on the other hand celebrated with a song that is as controversial as the business of lotto. It is a song played by the group called Nkasei and has something to do with a town in the Brong Ahafo Region called Tuobodom whose capital we hear is Jinijini.
I hear it is a derogatory song and the queen mother of Tuobodom got charged and breathed out electric current during her protest on air. She allegedly ended up demanding a mobile phone from Nkasei so that she could communicate with them to settle the matter peacefully, lest wahala.
Well, the song is rising up the charts and Nkasei are making the dough, but should it be at the expense of a whole townsfolk, their forebears and generations to come?
WATERPROOF
Waterproof, the famous comedian, was allegedly given hefty slaps at the Kumasi rail station by some Frafra jingoists who felt he was deriding their tribe. And Bob Okala had to run with his tail between his legs when he was confronted and realised that slaps were going to be visited on his lean face.
Let’s not use words and lyrics to cause discomfort to others.
This article was first published on Saturday July 9, 2005
