The Ministry of Finance has alleged that the previous Akufo-Addo administration diverted $65 million from a World Bank-funded flood mitigation project to finance COVID-19-related activities, raising concerns over the use of borrowed funds.
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 designed to address flooding and improve climate resilience in the capital.
Speaking on JoyNews’ PM Express on Monday, July 6, Mr Amissah dismissed claims that delays in the release of funds had hampered the implementation of the project.
He maintained that the GARID initiative was financed through a World Bank loan and therefore required prudent management since the country remained responsible for repaying the facility.
According to him, the current administration uncovered several instances of what it considers the misuse of externally borrowed funds after taking office in 2025.
Mr Amissah also cited the Ghana Economic Transformation (GET) Project, alleging that nearly GH¢1 billion was spent on travel in 2024 under that programme.
He disclosed that although the GARID Project was valued at $350 million, only $137 million had been drawn down, with nearly half of that amount redirected to finance COVID-19 interventions.
According to him, $65 million was transferred from the project for pandemic-related spending, but only $60.8 million had been accounted for, leaving about $4.2 million yet to be retired.
Mr Amissah argued that the diversion of the funds was unjustified, insisting that government had access to other financing sources during the pandemic, including the Stabilisation Fund, support from the International Monetary Fund and financing from the African Development Bank.
He further contended that the extensive use of loans to finance COVID-19 interventions contributed significantly to Ghana’s rising public debt.
Providing a breakdown of some of the expenditure, Mr Amissah said part of the redirected funds was used for fumigation exercises, with about $2.8 million allocated for that purpose.
He added that $60.8 million was distributed to Metropolitan, Municipal and District Assemblies, while more than $1 million was spent on feeding people under quarantine.
Mr Amissah also questioned an expenditure item labelled as “support for COVID-19 activities” amounting to $3 million, saying the Ministry had been unable to determine what the funds were used for.
He stressed that public officials had a responsibility to ensure borrowed funds were used for their intended purposes, particularly at a time when Ghana was grappling with the effects of a debt crisis.
