Akufo-Addo Administration Diverted $65M Flood Protection Funds to Covid-19, Finance Ministry Reveals

Akufo-Addo Government Accused of Misdirecting World Bank Flood Funds

The Ministry of Finance has levelled serious allegations against the former government led by Nana Addo Dankwa Akufo-Addo, indicating that massive amounts of money earmarked for crucial flood defences were instead funnelled into pandemic-related activities. According to the Ministry, an estimated $65 million from a vital World Bank-funded initiative was diverted to handle the Covid-19 crisis, leaving major infrastructural commitments severely compromised.

Frederick Amissah, serving as the Technical Advisor at the Ministry of Finance, disclosed these details during a television appearance on Monday, July 6. He explained that the diverted capital was originally designated for the Greater Accra Resilient and Integrated Development (GARID) Project. This extensive infrastructure programme was expressly established to mitigate the perennial flooding that continuously wreaks havoc across the nation's capital, destroying properties and displacing thousands of residents annually.

Instead of addressing the structural vulnerabilities in Accra's drainage systems, the previous administration reportedly shifted the funds during the height of the global health emergency. Amissah firmly rebutted any insinuations that the current government, under the leadership of President John Dramani Mahama, is responsible for delays in the project's financial disbursements.

"There haven't been any delays in the release of funds, and I just don't know where that is coming from," Amissah stated emphatically during his media engagement.

The GARID project represents one of several high-stakes World Bank loan agreements contracted by the state. Amissah stressed that because the country is strictly obliged to repay these loans with interest, the projects must be treated with the utmost accountability. Diverting capital from infrastructure to consumable emergency response, he argued, defeats the purpose of the long-term borrowing.

Unpacking the Financial Discrepancies and Unretired Funds

The total valuation of the GARID initiative stood at a substantial $350 million. Out of this total, $137 million had already been drawn down by the state prior to the current administration taking over. The revelation that nearly half of the disbursed amount was reallocated to health expenditure raises critical questions about financial propriety and the prioritisation of developmental objectives in Ghana.

Breaking down the specific financial movements, the Technical Advisor detailed how the redirected $65 million was ostensibly utilised by the previous regime. While a significant portion was allegedly distributed across the country for immediate interventions, a concerning margin remains completely unaccounted for.

• Approximately $60.8 million was disbursed to Metropolitan, Municipal, and District Assemblies (MMDAs) for localised interventions and relief efforts.
• An estimated $2.8 million was expended specifically on nationwide fumigation exercises in schools and public spaces.
• More than $1 million went towards feeding individuals who were placed under mandatory quarantine during the early days of the outbreak.
• A vague sum of $3 million was categorised simply as "support for Covid-19 activities" without any further specification or detailed receipts.

"Even the $65 million that was transferred for the purpose of COVID, only $60.8 million has been successfully retired. About $4.2 million remains unretired," Amissah noted, highlighting the gap in the financial records. "What actually perplexes me is that there was something that was described as support, support for Covid-19 activities of $3 million and we don't know what that is."

Amissah firmly rejected any notion that the unprecedented nature of the pandemic justified this financial maneuvering. He pointed out that the Akufo-Addo government already had access to various other fiscal buffers designed explicitly for such shocks. These included the Stabilisation Fund -- which was instituted during John Mahama's first term in office -- as well as massive emergency financial facilities provided by the International Monetary Fund (IMF) and the African Development Bank to help developing nations weather the pandemic.

Wider Implications for Ghana's Debt Crisis

The redirection of funds is not an isolated incident, according to the current administration. Since President John Mahama assumed office in 2025, the government claims to have uncovered a disturbing pattern of inappropriate spending linked directly to borrowed resources.

One striking example provided by Amissah involved the Ghana Economic Transformation (GET) Project. In a revelation that highlights potential excesses within the public sector, he alleged that nearly GH¢1 billion was spent purely on travel expenses within the year 2024 alone.

"There was a project called the Ghana Economic Transformation (GET) Project, and almost GH¢1 billion was spent on travelling in 2024. In one year alone, a billion Ghana cedis was used to travel for a World Bank project," he disclosed.

These actions, the Ministry argues, have significantly exacerbated the nation's severe debt crisis. Because many of the resources acquired were loans rather than direct grants, the decision to spend them on immediate consumption, travel, or unspecified pandemic support -- rather than revenue-generating or protective infrastructure -- has deepened the economic burden on the average citizen. Ghana's ongoing struggle with debt sustainability is directly tied to how these borrowed funds were managed over the past several years.

Restoring the GARID Mandate Under the New Administration

In response to the stalled progress on flood management and the alarming discoveries regarding the fund diversions, President John Mahama took decisive action shortly after his inauguration. In March 2025, the President directed the Finance Minister to adequately resource the newly established flood response committee. This directive ensures that the committee receives the necessary backing using funds specifically from the GARID facility, thereby returning the World Bank loan to its original, intended mandate.

The persistent flooding in Greater Accra remains a major socio-economic challenge, disrupting commerce, destroying property, and posing severe public health risks. The GARID project was envisioned as a comprehensive solution, integrating drainage improvements with solid waste management and urban planning. The alleged diversion of its funding has undoubtedly delayed these critical interventions, leaving vulnerable communities exposed to the harsh realities of the rainy season.

As the government obliges the state to repay these international loans, officials are demanding a higher standard of accountability from all public servants. The misuse of borrowed capital, especially amidst a crippling economic downturn driven by unsustainable debt, remains a central point of contention. The Finance Ministry's ongoing audit attempts to untangle the financial legacy of the previous administration, ensuring that every cedi and dollar is accounted for, and that future infrastructural projects are protected from similar fiscal diversions.

This development serves as a stark reminder of the long-term consequences of emergency spending and the critical need for robust financial oversight, even in times of national crisis. The current administration's commitment to transparency will be tested as they continue to investigate these discrepancies and work towards fully operationalising the delayed flood protection measures for the people of Greater Accra.