The One District One Factory (1D1F) programme is facing scrutiny after an arrears audit revealed what officials have described as a fictitious GH¢89.4 million debt linked to the initiative.
The findings were presented to Parliament in a statement delivered by Deputy Finance Minister Thomas Nyarko Ampem on behalf of Dr. Cassiel Ato Forson.
According to the statement, the Ministry of Trade and Industry, in 2024, requested the release of GH¢89.4 million to five commercial banks as the government’s contribution toward interest payments under the 1D1F programme.
The 1D1F initiative, a flagship policy of former President Nana Akufo-Addo and the New Patriotic Party (NPP), was designed to accelerate industrialisation by establishing at least one factory in every district.
The Ministry of Finance processed the request and sent it to the Controller and Accountant-General’s Department for payment.
However, when auditors from the Ghana Audit Service, working with international firms Ernst & Young and PwC, reached out to the banks to confirm the claims, all five institutions reportedly denied that the government owed them any funds under the scheme.
“According to the auditors, the said GH¢89.4 million debt was fictitious,” the statement told Parliament. “Without the audit intervention, a whopping GH¢89.4 million of hard-earned public money could have been disbursed to settle this non-existent liability.”
The audit also flagged another suspicious transaction: a reported GH¢10.5 million payment into a so-called “Buffer Account” at a commercial bank.
When auditors tried to verify the payment, the bank said it had never received the funds. Further investigation revealed that the account number provided did not exist in the bank’s records and did not follow its account numbering format.
“The evidence from the audit pointed to a completely fictitious account,” the statement added.
In response, the government has announced plans to conduct a full forensic audit of the entire One District One Factory programme.
Mr. Ampem emphasised the importance of the review, given the large sums involved, noting that about GH¢391 million had already been disbursed in interest subsidies for the programme by the end of 2024.
“Mr Speaker, only God knows how much of taxpayers’ money has been lost to similar fictitious claims,” he said.
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