A damning investigation by Bright Simons, Vice President of IMANI Africa, has uncovered widespread governance failures at Development Bank Ghana (DBG), exposing how the institution allegedly violated procurement rules and mismanaged public funds.
The findings, based on internal documents and whistleblower accounts, reveal a pattern of non-competitive contracts, conflicted financial dealings, and institutional inaction that undermined the bank’s $250 million development mandate.
Simons’ report details how 77% of DBG’s 2022-2023 contracts, worth GH₵508 million, were awarded through sole-sourcing rather than competitive bidding. Many went to little-known firms such as Kulana and Asamoah & Williams Consulting, despite their limited financial capacity and operational track records. Payments were frequently made in advance without proper documentation or performance guarantees. In one case, a modified arbitration clause secretly shifted dispute resolution to London, removing oversight from Ghanaian authorities.
The bank’s treasury management also raised serious concerns. Rather than directing funds to small and medium enterprises as intended, DBG allegedly placed millions at below-market rates with select banks, including Fidelity Bank, where the CEO reportedly held shares. One such transaction resulted in a GH₵2.5 million loss.
More troubling than the individual violations was the systemic lack of oversight. The Finance Ministry, Bank of Ghana, and international partners like the World Bank failed to intervene despite clear red flags. Internal controls collapsed—procurement committees were often inquorate, legal reviews were bypassed, and even senior staff claimed ignorance of major contracts until presented with payment evidence.
The scandal has since triggered government action, including the dismissal of DBG’s board and a forensic audit. Simons’ investigation demonstrates how civic oversight can expose institutional rot when official checks fail. As Ghana works to restore accountability, this case may set a precedent for stronger governance in public financial institutions.
