The Ghanaian government has dismissed all independent directors of the Development Bank Ghana (DBG) following damning findings from procurement and forensic audits.
In a June 17 letter, Finance Minister Dr. Cassiel Ato Forson cited breaches in governance and financial management as the basis for the immediate termination.
The termination notice referenced Clause 3.4 (VIII) of the directors’ contracts, emphasizing that the decision stemmed from audit reports rather than voluntary resignations. One director had submitted a resignation letter on June 3, but the government clarified that the mass dismissal was due to uncovered irregularities, including procurement violations, lack of value-for-money assurances, and red flags in a forensic probe. The ousted directors have been instructed to return all company assets.
This move underscores Ghana’s push for stricter oversight of public financial institutions, particularly as it navigates an IMF-backed fiscal restructuring program. The DBG, a key player in financing agriculture, manufacturing, and SMEs, is critical to Ghana’s economic recovery, making its governance a high-stakes issue for both domestic and international stakeholders.
Analysts view the purge as an effort to restore confidence in the bank’s operations, though questions linger about potential legal repercussions and the criteria for appointing replacements. The government has yet to announce new directors, but observers expect heightened scrutiny in the selection process to prevent recurring lapses.
