Ghana keeps losing money because offenders are not prosecuted – James Avedzi

Dr. James Klutse Avedzi, the Acting Director-General of the SEC, criticized the government's failure to prosecute public officials for financial mismanagement. He warned that without action, Ghana will continue to suffer significant losses.

In an interview on The Class Morning Show, Dr. Avedzi highlighted a major weakness in Ghana's public sector. He noted that there is a lack of enforcement and accountability for financial infractions. Although the Auditor-General submits annual reports to Parliament, recommendations for prosecution are often ignored by the Attorney General’s Department.

“The Public Accounts Committee does not have prosecutorial powers,” he explained. “That responsibility lies with the Attorney General.” Even when Parliament adopts recommendations for prosecution, no action is taken. This inaction emboldens public officials to misuse state funds.

Dr. Avedzi stated that this culture of impunity has led to significant financial losses. He emphasized that punishing offenders would help deter future misconduct. “If we begin to prosecute people and recover money, it will serve as a deterrent,” he said.

He also discussed Ghana's economic outlook and the current IMF program. He believes avoiding future bailouts depends on proper economic management and efficient revenue mobilization. “If government raises revenue through taxes and manages it well, citizens will pay more,” he noted.

However, he stressed that taxation should not be the only focus. Ghana must manage its natural resources effectively to generate sustainable income for development. He cited mineral-rich communities like Tarkwa and Obuasi as examples of poor negotiations with foreign companies.

“In some cases, foreign mining firms take up to 80% of benefits while Ghana gets less than 20%,” he said. “That must change.” Dr. Avedzi called for renegotiating deals to benefit local communities.

He praised the government's efforts to restructure the mining sector through the new Gold Board. This board limits mining licenses to Ghanaians and regulates gold exports more effectively.