Finance Ministry Exposes $65m Diversion from Flood Project to Covid under Previous Government

World Bank Flood Funds Diverted During Pandemic

The Ministry of Finance has alleged that $65 million earmarked for Ghana's flood protection efforts was diverted to Covid-19 activities by the previous Akufo-Addo government. Frederick Amissah, a Technical Advisor at the ministry, disclosed that the funds were part of the Greater Accra Resilient and Integrated Development (GARID) Project, a World Bank-backed initiative designed to address persistent flooding in the capital.

Speaking on JoyNews' PM Express in July, Mr Amissah stated that nearly half of the $137 million drawn down from the $350 million GARID facility was redirected to Covid-19 expenditure. He emphasised that such actions breach Ghana's obligations to international lenders and undermine accountability in managing borrowed funds, particularly when the country faces mounting debt challenges.

Unexplained Spending and Limited Justification

According to the Finance Ministry, $60.8 million of the diverted amount has been accounted for, though $4.2 million remains unretired. The funds were reportedly used for fumigation ($2.8 million), transfers to Metropolitan, Municipal and District Assemblies ($60.8 million), quarantine feeding (over $1 million), and unspecified Covid support activities ($3 million). Mr Amissah rejected any justification for the redirection, arguing that the government had alternative funding sources, including the Stabilisation Fund, IMF support, and African Development Bank facilities.

The ministry contends that inappropriate use of borrowed funds during the Covid-19 pandemic significantly worsened Ghana's debt crisis, as most emergency resources were loans rather than grants. Mr Amissah highlighted the mismanagement as emblematic of broader fiscal challenges that the current Mahama administration inherited upon taking office in 2025.