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Business News of Tuesday, 20 October 2015

Source: Today Newspaper

PMMC is broke; unable to pay salaries

PMMC logoPMMC logo

Reports say Precious Minerals Marketing Company (PMMC) Limited, operating under the companies’ code, with government of Ghana as the sole shareholder, is broke and unable to pay workers’ salaries.

Today was reliably informed that PMMC, which is a limited liability company, is heavily indebted to banks and exporters.

The state company is said to be collapsing due to lack of financial indiscipline on the part of authorities in the disbursement and utilisation of funds.

This paper was told by flawless sources that it was as a result of the above challenges faced by PMMC that Bank of Ghana (BoG) has directed all gold exporters to obtain license from PMMC before they do business.

The BoG in a statement directed that that all gold exports should be made through the Precious Minerals Marketing Company.

The BoG also asked that gold should not be made through third parties.
According to the central bank, the directive was in line with its Foreign Exchange Act, which it is using to streamline activities covering gold exports.

The new requirement will now ensure that all licensed gold exporters secure new documents from the Bank of Ghana, to aid their exports.

The bank maintains that these documents are non-transferable.

It also asked exporters to contact Bank of Ghana with proof of their license before they are given the necessary access credentials.

To this end, the central bank warned that anyone who fails to fully comply with this directive would be prevented from exporting gold outside the country.

Below is the full statement from the Bank of Ghana

The Bank of Ghana wishes to inform the general public and gold exporters that pursuant to Section 2, subsection 3 of the Foreign Exchange Act 2006 (Act 723), it has streamlined the processes for documentation of gold exports by Licensed Gold Exporters (LGEs).

Accordingly, with effect from Tuesday, September 15, 2015, the following requirements shall apply for gold exports.

1. Authentication would be required of all LGEs to access and download Form FEX A4 from the Bank of Ghana website ( for completion and submission in connection with gold exports.

2. All LGEs intending to export gold should contact Bank of Ghana with proof of license to export gold for their Access Credentials.

3. The downloaded Form FEX A4 is non-transferable and no assignable.
4. LGEs would not be permitted by Ghana Revenue Authority (Customs Division) to export gold unless the completed Form FEX A4 bears Bank of Ghana’s embossment.

5. Proof of independent certification by Precious Minerals Marketing Company Limited (PMMC) of the weight, quality and value of the gold earmarked for export is a necessary requirement to securing Bank of Ghana’s embossment.

6. All exports of gold are to be done only through PMMC.

7. LGEs are not permitted to export gold for third parties.

Please note that failure to comply with the above arrangements by any LGE on or after the effective date would prevent it from exporting gold from Ghana.

However, industrial players say the move is just to sabotage local gold exporters in an apparent move to save PMMC from collapsing.