Economy

    Audit Report Uncovers GH¢580 Million in Irregularities in 2023 African Games Contracts

    Forensic audit reveals inflated costs, unsupported payments, and procurement breaches.

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    A forensic audit into Ghana's hosting of the 2023 African Games has uncovered widespread financial irregularities. Inflated contracts and unsupported payments total GH¢580 million. The report was commissioned by President John Dramani Mahama. Its findings detail significant breaches in procurement and financial management. The 700-page report, referenced AG.SAR/2026/03, was signed by Auditor-General Johnson Akuamoah-Asiedu. It examined the Games' operational and financial management. This included areas like procurement and infrastructure delivery. The audit followed a request from the Office of the President on 22 October 2025. Ghana spent GH¢2.245 billion on the Games. This sum came from government releases, sponsorships, and participation fees. Despite this spending, auditors found outstanding liabilities of GH¢208.6 million. These liabilities include GHS 155.1 million, US$4.1 million, and €288,775. The report recommends recovery actions and sanctions. These actions target former Youth and Sports Minister Mustapha Ussif. They also target former Chief Director William Kartey and former LOC Chairman Dr Kwaku Ofosu-Asare. One major finding involves Delovely Company Limited. The Ministry of Sports paid GH¢38.9 million for sports equipment. The contract was valued at US$3.24 million. However, equipment worth US$206,000 was never supplied. This included items for table tennis and badminton. Auditors also questioned a US$408,000 lump sum for "Sports Equipment." This amount lacked clear specifications. It also lacked supporting documentation. The report suggests the contract value should have been US$2.62 million. This implies an overpayment of US$374,000, roughly GH¢4.5 million. Anti-doping tests also faced scrutiny. Omni Speciality Product Limited was paid €739,000 for these services. Benchmarking against World Anti-Doping Agency rates revealed significant overpricing. The estimated overcharge was €572,000, around GH¢8 million. Accommodation for Games officials also showed inflated costs. JDK Travel and Tours secured these contracts. The rate was US$150 per room per night for 500 rooms over 21 days. This amounted to US$1.58 million. Market research showed hotel rates between US$50 and US$70. This made the justifiable total around US$735,000. Auditors identified an inflated component of US$840,000. This is about GH¢10.1 million. The engagement of JDK Travel and Tours raised further concerns. The company was a travel and tour entity. It lacked an accommodation licence. The report noted that two hotels listed by JDK could not be verified. JDK also received GH¢45.7 million for vehicle transportation. Market rental rates suggested overpricing of GH¢13.1 million. Another GH¢2.2 million was flagged as inflated. This was due to recomputed quantities and usage. The company also received GH¢3.16 million for vehicle branding. Comparable services should have cost approximately GH¢1.16 million. This points to an overpricing of GH¢2 million. Systemic weaknesses affected 14 major service contracts. These contracts, valued at GH¢336.6 million, covered services like catering and transport. They were awarded as fixed lump sums. However, they involved variable services. Contract files lacked essential documentation. This included rooming lists and transport logs. Therefore, auditors concluded that GH¢336.6 million was paid without verifiable evidence of services. A catering contract with L&M included non-feeding costs of US$2.83 million. These covered transport and logistics. They also included staff and project management costs. These charges lacked supporting schedules. Some services overlapped with other contracts. The audit also identified GH¢150.6 million in related-party exposure. Several companies awarded contracts shared common ownership. This raises concerns about conflicts of interest. Irregular cash withdrawals of GH¢20.4 million were also flagged. Payments were made in cash, violating electronic transfer rules.

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