Ghana losese approximately GH¢13.8billion (US$3 billion) annually to corruption
Renowned tax and legal expert Professor Abdallah Ali-Nakyea has called for urgent amendments of Ghana’s anti-corruption laws to close longstanding legal loopholes that continue enabling impunity and eroding national development efforts.
Speaking at a multi-stakeholder forum in Accra organised by the Media Foundation for West Africa (MFWA), Prof. Ali-Nakyea emphasised that although Ghana boasts a wide range of anti-corruption institutions and legal frameworks, the fight against graft remains weak due to fragmented implementation, institutional under-resourcing and outdated legislation.
The forum was themed “Hidden Riches, Hollow Laws: Dissecting the Loopholes that Fuel Corruption in Ghana”.
“Corruption undermines democracy, violates human rights, distorts markets and allows organised crime and terrorism to flourish. It is not just a legal issue; it is a developmental crisis,” he stated.
He highlighted alarming statistics, such as Ghana losing approximately GH¢13.8billion (US$3billion) annually to corruption – a figure that, if curbed, could build 12 facilities equivalent to the 430-bed Ridge Hospital in Accra.
He juxtaposed this with the country’s request for a US$3billion IMF loan over three years, underscoring that internal leakages outstrip external aid.
Prof. Ali-Nakyea cited numerous cases, including the GYEEDA and recent National Service Scheme scandals, as evidence for the enduring scale of public sector corruption.
He noted that corruption disproportionately affects the poor by diverting resources meant for development, deepening inequity and poor service delivery.
Failures
The tax and anti-money laundering specialist outlined several deficiencies in the anti-corruption laws, especially the Criminal Offences Act which only addresses bribery when it involves public officers – leaving out private sector actors and indirect benefits.
He also criticised the Public Procurement Act, stating that while it includes provisions on private sector bribery, its scope is limited to procurement processes and does not criminalise broader unethical corporate practices.
“In any procurement, there is both demand and supply. We keep prosecuting the public officers, but the private actors – those who offer the bribes – go untouched. That has to change,” he stressed.
Prof. Ali-Nakyea also decried the misuse of sole-sourcing in public procurement, which he said defeats the very essence of competitive and transparent contracting.
Institutional weaknesses
Despite Ghana having numerous anti-corruption institutions – including the Office of the Special Prosecutor (OSP), EOCO, CHRAJ, Financial Intelligence Centre and Auditor-General – many remain underfunded and understaffed.
“These institutions are always broke,” he remarked. “How are they expected to investigate, prosecute and recover stolen assets without the needed resources?”
He called for enhanced collaboration among these bodies, especially in tracking beneficial ownership under the Companies Act, 2019 (Act 992).
He also lamented the low compliance with requirement for companies to disclose true, individual owners to prevent politically exposed persons from hiding behind anonymous corporate structures.
He also questioned the capacity and independence of internal audit systems and expressed concern over the safety and protection of whistleblowers, calling for a review of the Whistleblower Act to guarantee confidentiality and relocation support where necessary.
Recommendations
To this end, he recommended: Amendment of anti-corruption and procurement laws to explicitly cover third-party beneficiaries and private sector bribery; Strengthening institutions like the OSP, Auditor-General, and CHRAJ with adequate funding and autonomy; Criminalising conflict of interest and establishing clearer penalties for non-declaration of assets by public officials; Ensuring that findings from the Public Accounts Committee are enforced, including recovery and prosecution.
Enhancing access to public information for journalists and civil society, while protecting whistleblowers more robustly; Blacklisting companies found engaging in unethical practices from public procurement opportunities; Promoting public transparency through technology and reducing manual interference in financial transactions.
He further urged international partners to focus support on institutional capacity building rather than aid handouts.
“We don’t need loans. Help us plug the holes and we’ll have enough to develop,” he said, further stressing that the country must make corruption an uncomfortable venture.
For his part, Dr. Kojo Impraim, Programme Director (MFWA), noted that corruption and illicit financial flows are undermining Ghana’s democracy, national security and development financing.
He called for a united front and stronger accountability measures, urging government and stakeholders to allow the law to work without political interference.