Economy

    Auditor-General Demands GHS 579 Million Refund from African Games Officials

    Former Minister, Chief Director, and LOC Chairman implicated in widespread financial irregularities.

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    Ghana's Auditor-General has ordered former Sports Minister Mustapha Ussif, former Chief Director William Kartey, and former Local Organising Committee Chairman Dr. Kwaku Ofosu-Asare to refund GHS 579.1 million to the state. This directive follows a forensic audit revealing widespread financial irregularities in the organisation of the 13th Africa Games. The audit, commissioned by President Mahama last year, identified substantial cost inflation, irregular payments, and unsupported expenditures. These issues affected contracts relating to catering, accommodation, transport, equipment procurement, infrastructure, and administrative spending for the continental multi-sport event. Auditors recommended recovery of GHS 579,114,352.24, alongside $44,354,881.77 and €629,070, due to overpricing, unjustified payments, and undelivered goods. This development underscores persistent challenges in public finance management and oversight of large-scale government projects in Ghana. Past audits have consistently highlighted discrepancies and inefficiencies in public spending, raising concerns about accountability and value for money. The Auditor-General’s report paints a picture of systemic issues during Ghana’s hosting of the Games, impacting the nation's economic integrity. The Auditor-General's report, while not making criminal findings, emphatically recommends the recovery of these substantial funds. This recommendation serves as a critical measure to hold officials accountable for their roles in managing public resources. The Ghana Broadcasting Corporation Director-General, Professor Amin Alhassan, was also named concerning a training contract, expanding the scope of those implicated. The implications for public sector accountability are significant. The government and public will closely watch the enforcement of these recovery directives, as adherence demonstrates a commitment to fiscal discipline. This action could set a precedent for future oversight of major national events and public expenditure, potentially improving transparency and governance standards in Ghana's public sector. Key irregularities identified include catering contracts with $2.83 million and GHS 33.9 million in non-feeding costs without documentation. An anti-doping contract showed €572,040 and GHS 8.01 million in overpricing compared to global benchmarks. Accommodation costs were inflated by $840,000 and GHS 10.08 million, with hotel rooms charged at $150 per night instead of market rates between $50 and $70. Sports equipment purchases, including for boxing and triathlon, exceeded benchmark prices by $322,697 and GHS 3.87 million. Transport and logistics contracts revealed over GHS 30 million in flagged expenses, including GHS 13.1 million for vehicle hiring overpricing and GHS 2 million for branding and de-branding irregularities. Auditors also found $374,462 and GHS 4.49 million in payments for undelivered or unspecified equipment. Additionally, GHS 15.09 million of unrelated payments, including to Black Stars technical staff, were identified. Infrastructure defects across venues like the Aquatic Centre and Legon Stadium require GHS 12 million for rectification. The most substantial anomalies relate to major engineering and construction contracts for facilities such as the Borteyman Sports Complex, with $38.99 million and GHS 467.89 million in unjustified variations and inflated claims. Three single-source infrastructure contracts were also overpriced by GHS 5.40 million due to a lack of proper price assessments. These findings highlight the extensive nature of the financial mismanagement uncovered. The recovery efforts are crucial for regaining public trust and ensuring judicious use of taxpayer money. The outcome of these efforts will be a key indicator of the government's resolve in combating financial impropriety.

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