$65m flood protection cash was diverted to Covid under Akufo-Addo – Finance Ministry

The Ministry of Finance has alleged that the previous administration led by former President Nana Addo Dankwa Akufo-Addo redirected $65 million from a World Bank-funded flood mitigation project to finance COVID-19 response activities, raising fresh concerns about the management of borrowed funds.

The allegation was made by the Ministry's Technical Advisor, Frederick Amissah, who said the money formed part of the Greater Accra Resilient and Integrated Development (GARID) Project, a World Bank-supported initiative designed to improve flood resilience and strengthen urban infrastructure in Accra.

Speaking on JoyNews' PM Express on Monday, July 6, 2026, Mr. Amissah insisted that the diversion of the funds delayed critical flood protection interventions and represented a misuse of loan resources intended for a specific development purpose. No Delays in Releasing GARID Funds

Responding to claims that delays in the release of funds had slowed the implementation of the GARID Project, Mr. Amissah dismissed the assertion.

"There haven't been any delays in the release of funds, and I just don't know where that is coming from," he stated.

According to him, the issue was not the availability of financing but rather how portions of the borrowed funds were utilised.

He stressed that projects financed through World Bank loans require strict accountability because Ghana remains responsible for repaying the debt regardless of how the funds are spent.

$65 Million Allegedly Redirected to COVID-19 Activities

Mr. Amissah explained that the GARID Project has a total financing envelope of $350 million, of which approximately $137 million had already been disbursed.

He alleged that nearly half of the amount drawn down was diverted from its original purpose.

"Nearly half of the $137 million went into COVID expenditure; it was redirected to COVID," he said.

According to him, the total amount transferred to support the government's pandemic response stood at $65 million.

He further disclosed that although $60.8 million of that amount had been accounted for, approximately $4.2 million remained unretired.

Mahama Government Conducted Financial Review

Mr. Amissah stated that after President John Dramani Mahama assumed office in 2025, the new administration reviewed several externally funded projects and identified what it described as questionable expenditure patterns.

He said President Mahama subsequently instructed the Minister for Finance in March 2025 to make resources available from the GARID Project to support the government's flood response committee after it was established.

According to him, the review formed part of broader efforts to improve financial accountability and ensure that externally funded projects achieve their intended objectives. Additional Claims About GET Project Spending

Beyond the GARID Project, Mr. Amissah also raised concerns about the management of another World Bank-supported initiative—the Ghana Economic Transformation (GET) Project.

He alleged that almost GH¢1 billion was spent on travel-related activities under the project in 2024.

"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 claimed.

The allegations have not been independently verified, and no response from officials of the previous administration was included in his remarks.

Mr. Amissah questioned whether the COVID-19 pandemic justified diverting resources from a flood mitigation project.

"There was no justification for that," he argued.

He maintained that the government at the time already had access to multiple financing sources, including the Ghana Stabilisation Fund, financial support from the International Monetary Fund (IMF) and funding from the African Development Bank (AfDB).

According to him, reliance on borrowed funds for pandemic expenditure contributed significantly to Ghana's debt burden because much of the COVID-19 financing consisted of loans rather than grants.

Approximately $2.8 million was spent on fumigation activities.
Around $60.8 million was transferred to Metropolitan, Municipal and District Assemblies (MMDAs).
More than $1 million went towards quarantine feeding.
A further $3 million was recorded as support for unspecified COVID-19 activities.

"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," he stated.

Mr. Amissah concluded by stressing the importance of ensuring transparency in the use of public funds, particularly loans obtained from international development partners.

He argued that public officials have a responsibility to account for every borrowed dollar, warning that misapplication of externally financed resources undermines development objectives and places additional financial pressure on the country.

The allegations are likely to reignite debate over the management of COVID-19 expenditure and the utilisation of donor-funded development projects, particularly as Ghana continues efforts to strengthen public financial management and reduce its debt burden.