Audit Report Raises Questions Over Missing GH¢10 Million And Alleged GH¢89 Million Fictitious Debt Under 1D1F

A recent audit into government arrears linked to the One District One Factory (1D1F) programme has revealed troubling financial irregularities, including a suspected fictitious debt of GH¢89.4 million and a questionable GH¢10.5 million payment tied to a non-existent bank account.

The findings were presented to Parliament during a statement delivered by Deputy Finance Minister Thomas Nyarko Ampem on behalf of the Finance Minister. The audit examined claims submitted under the 1D1F initiative, a flagship industrialisation policy introduced during the administration of former President Nana Addo Dankwa Akufo-Addo.

According to the audit report, the Ministry of Trade and Industry in 2024 requested the release of GH¢89.4 million to five commercial banks. The request was meant to cover the government’s portion of interest payments for loans provided under the 1D1F programme.

The Ministry of Finance processed the request and forwarded it to the Controller and Accountant-General’s Department for payment. However, auditors from the Ghana Audit Service, working with international audit firms Ernst and Young and PwC, later contacted the banks to verify the claims.

The banks reportedly stated that they were not owed any such payments under the programme. This raised serious concerns, leading auditors to conclude that the GH¢89.4 million debt claim was fictitious. The audit noted that without the verification process, the government might have paid the amount to settle a liability that did not actually exist.

The investigation also uncovered another suspicious transaction involving a reported payment of GH¢10.5 million into what was described as a “Buffer Account” at a commercial bank. When auditors attempted to confirm the transaction, the bank indicated that it had never received such funds.

Further checks showed that the account number provided did not exist within the bank’s system and did not match its standard account number structure. The auditors therefore concluded that the account itself was fictitious.

Government officials say these revelations have prompted plans for a comprehensive forensic audit of the entire 1D1F programme. Authorities argue that the review is necessary given the scale of public funds committed to the initiative.

Records presented to Parliament indicate that by the end of 2024, the government had already spent approximately GH¢391 million on interest subsidies under the programme.

Officials say the new audit will help determine whether similar questionable claims exist elsewhere in the system and ensure that public funds are properly safeguarded.