Audit exposes ‘fictitious’ GH¢89.4 million 1D1F debt, calls for forensic review

The Ghana Audit Service has uncovered a GH¢89.4 million payment under the One District, One Factory (1D1F) initiative that auditors say was entirely fictitious.

The discovery follows a comprehensive review of unpaid invoices, Interim Payment Certificates (IPCs), and Bank Transfer Advices (BTAs) submitted by various ministries in 2024.

The Minister for Government Communication, Felix Kwakye Ofosu in a social media post on Tuesday, March 10, stated that the audit was conducted in partnership with EY and PwC to verify claims submitted to the Ministry of Finance.

“Fictitious Debt of GH¢89.4 million – The then Ministry of Trade and Industry in 2024 submitted a request of GH¢89.4 million to the Ministry of Finance to be transferred to five commercial banks as government contribution to interest payments under the One District, One Factory (1D1F) initiative. When auditors contacted these five banks to confirm the liability, every single one of them denied being owed any amount by government under the said arrangement,” he noted.

The audit also revealed that GH¢10.5 million was recorded as having been paid into a “Buffer Account” at a commercial bank, but the account did not exist.

“Upon verification, the bank confirmed that it had never received such payment. The account number cited did not exist within the bank’s records and did not even conform to its account numbering format,” the minister added.

The findings have prompted the government to plan a forensic audit of the 1D1F scheme, particularly after GH¢391 million had already been spent on interest subsidies by the end of 2024.

Beyond the 1D1F revelations, the audit flagged irregularities in the Dry Spell Relief programme, including missing rice, under-delivered maize, and overpayments to transport companies moving grains to farmers.

The audit report also rejected GH¢65.2 million requested as additional payments to a transport company that moved only 35,000MT of grain, despite claims for 134,000MT.