The Ministry of Finance has alleged that the previous Akufo-Addo administration diverted US$65 million from a World Bank-funded flood protection project to finance COVID-19-related activities, raising fresh concerns over the management of borrowed funds.
Speaking on JoyNews’ PM Express, Technical Advisor at the Ministry of Finance, Frederick Amissah, said the money was part of the Greater Accra Resilient and Integrated Development (GARID) Project, which was established to address perennial flooding in the capital.
Mr. Amissah rejected claims that delays in the release of funds had affected the implementation of the project, insisting that the issue was not delayed disbursement but the diversion of funds intended for flood mitigation. He noted that GARID is financed through a World Bank loan, which Ghana is obligated to repay.
According to him, the current administration discovered after assuming office that nearly half of the US$137 million drawn down under the project had been redirected to support COVID-19 expenditure during the previous government.
He further claimed that although US$60.8 million of the transferred funds had been accounted for, about US$4.2 million remains unretired. He questioned the justification for the diversion, arguing that government had access to other financing sources during the pandemic, including support from international financial institutions and the country’s Stabilisation Fund.
Mr. Amissah also alleged that portions of the redirected funds were spent on fumigation exercises, support to Metropolitan, Municipal and District Assemblies (MMDAs), quarantine feeding and other COVID-19-related activities. He maintained that the use of borrowed funds for purposes outside the project’s original objectives contributed to Ghana’s debt burden.
The allegations come amid renewed national discussions on flood management following recent flooding in parts of Accra and as government rolls out new relief and mitigation measures.
