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Debates & controversies

The Great African Scandal

Introduction | Rice | Chocolate | Gold | What you can do

Gold

On the last leg of his journey to find out why Ghana, which is so rich in resources, is one of the poorest countries in the world, Robert Beckford heads south to the gold mining town of Obuasi.

Gold is one of Ghana’s most lucrative exports, and in Obuasi the biggest company is Anglo Gold Ashanti (AGA). Last year AGA recorded gross profits of about half a billion pounds from its global operations but to Robert it doesn’t look as if the local people are sharing in the bonanza.

In the 1980s the Ghanaian government supported by the IMF and the World Bank encouraged foreign investment. Robert travels to Dokyiwa village, where local people were persuaded to sell their land in return for compensation they now claim was too little.

Poisoned water

They also say that the impact on the environment has been devastating. A University of Ghana survey found high levels of toxic substances in streams, fruit and boreholes in Obuasi. In one village, arsenic levels in water were recorded as 1,800 times higher than the World Health Organization maximum values.

In the village of Binsere Robert discovers a pit full of toxic waste less than 100 metres from the houses. The people scrape a living illegally washing out the waste in the hope of finding slivers of gold. They claim that AGA are aggressive in protecting their property. Some even say that they have been beaten up by the police and the military, and show Robert the lacerations on their bodies.

Robert Beckford is utterly shocked. He says: ‘The way they are being treated here – I haven’t got words for it – the only word that you can use is that they are being made to be and live like niggers. People who are less than human beings.’

Unconvincing explanations

In response to complaints from local people, AGA say that they are helping the community. They have embarked on a $3-million programme to cult malaria by spraying buildings with insecticide. But the locals claim the stagnant ponds are a breeding ground for mosquitoes.

Whatever the truth of that claim, Robert says that, in this village where there is no work and very little food, it does not look like a company committed to the wellbeing of the community.

Robert decides to confront the bosses of AGA with his findings. The General Manager of Corporate Affairs in Ghana says they are aware of the problem and are trying to find ‘a holistic approach’. He claims that the contamination is not caused purely by mining and says he is not aware of beatings of illegal miners by AGA security. According to him, anyone arrested for illegal mining or trespassing, is handed over to the police. He adds: ‘What happens there, to me is not my concern.’

At a meeting with villagers the following day, years of anger and frustration flood out. They ask about the company training programme for young men who are looking for work, about the pollution, and about compensation. Robert Beckford is not impressed with the answers: ‘I’m disappointed,’ he says, ‘that there wasn’t some kind of olive branch from the company to give people real hope.’

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