Screenshots of a progress report from Deloitte posted online by Bright Simons, a Ghanaian writer and activist, appear to show significant governance and financial management issues at the Development Bank Ghana Ltd (DBG).
The “Procurement Review, Value for Money Review and Forensic Investigation” highlights delays, inadequate legal reviews, and a staggering $6 million discrepancy in the bank’s IT infrastructure budget, raising serious questions about accountability and oversight.
Delays, Legal Oversights and Financial Mismangement
The report details a troubling pattern of delays in contract reviews, exemplified by the Kulana Contract.
In April 2023, Mr. Alhassan, a key figure, flagged the need for legal scrutiny of contracts. Despite referring the contract to Lawfields for review, a three-month delay ensued before action was taken.
This sluggish response was further compounded when Yvonne Fiadjoe, the General Counsel, declined to review a March 2024 addendum, deeming it futile given its legal binding nature.
The report highlights a $6 million overspend on IT infrastructure, a figure that Deloitte warns poses significant financial risks.
The report criticizes DBG for not benchmarking contract prices against market rates, a lapse that led to overfunding and potential misallocation of resources.
This overspending, the report suggests, could indicate weaknesses in budgeting, contract negotiation, and project management, casting a shadow over the bank’s financial health.
Governance Deficiencies
The Deloitte investigation also points to a Technology Committee ill-equipped for its mandate.
Despite approving a costly IT architecture, the committee, chaired by Nora Bannerman-Abbott, lacked the requisite IT expertise.
Opposition from ex-director Yaw Nsarkoh and concerns over cost verification were overruled, leading to a decision that prioritized majority vote over due diligence.
Calls for Reform
The report urges a reevaluation of its procurement policies and committee qualifications.
The findings, corroborated by interviews with the FAC Chair, underscore the need for robust oversight to ensure value for money and protect the bank’s mandate.
