Koforidua: Michael Okyere Baafi, a former Deputy Minister of Trade and Industry, has debunked allegations of corruption surrounding the One District One Factory (1D1F) programme, questioning the timing and transparency of an audit report. "I believe the government wants to use this as a diversion tactic, just like the gold and cocoa issues," he said.
According to Ghana News Agency, Mr. Okyere Baafi, who is also the Ranking Member on Parliament's Trade and Industry Committee, explained in an interview with a section of the media in Koforidua that the 1D1F programme involved the government paying 50 percent of interest on loans advanced by commercial banks to participating companies. "But no loans were disbursed, so no interest was payable," he stated.
Mr. Okyere Baafi criticized the auditors, claiming that there is no report available for scrutiny and calling for the full report to be made public. He emphasized that no interest subsidy was paid, stating, "There was no loan advanced, so there was no interest in paying." He accused the government of attempting to create a perception of corruption where none existed, urging against creating the impression that the previous government mismanaged funds.
The controversy arises from disclosures by the Ministry of Finance (Ghana) during a statement in Parliament on Tuesday, March 10. The statement was delivered on behalf of Cassiel Ato Baah Forson, the Minister of Finance, by Thomas Ampem Nyarko, the Deputy Minister of Finance. According to the ministry, GHS68.7 billion in public claims had been submitted for auditing, with GHS45.4 billion validated for payment. However, GHS8.1 billion was rejected due to irregularities, including unsupported documentation, duplication, inflated amounts, and payments for work that was allegedly never executed.
Mr. Ampem Nyarko reported that GHS13.2 billion had been flagged for further scrutiny due to serious concerns. He informed Parliament that the audit uncovered systemic weaknesses that enabled practices such as fictitious claims, recycled invoices, forged store receipt advice, and collusion between contractors and public officials. According to the Deputy Minister, the government introduced a 'triple-lock' accountability framework requiring full verification before public payments are approved, and the findings have been referred to the Office of the Attorney-General and Ministry of Justice (Ghana) for possible criminal prosecution where wrongdoing is established.