Professional Services firm, Deloitte, has submitted its audit report on the Development Bank Ghana (DBG) to the Minister of Finance.
The Minister, Dr Cassiel Ato Forson, who announced this, said that the report will be presented to the Attorney-General for necessary legal actions.
There have been issues about the governance at DBG since last year, when the World Bank acknowledged it was reviewing allegations of financial mismanagement at the institution.
DBG has consistently denied the allegations, insisting that no development partner funds had been misapplied.
With Deloitte’s findings now complete, the government says it is moving quickly to reposition DBG. A new Chief Executive Officer, selected through a competitive process, will be announced on Monday, while a reconstituted Board is expected by the end of October.
The Finance Minister in a post on his X page on Friday September 26 said that “earlier today, I met with our key Development Partners — the World Bank, the African Development Bank (AfDB), Germany’s KfW, and the European Investment Bank (EIB) — to deliberate on the Deloitte Audit Report on the Development Bank Ghana (DBG) and the way forward for this vital institution. We reached a clear consensus: decisive action is required. The Audit Report will be handed over to the Attorney General for the necessary legal steps.
“I stressed that the past is behind us, and a new dawn has begun for DBG. The Bank is finalising its Corporate and Action Plans to build a stronger, more sustainable future. I also reminded the new management and Board that accountability is non-negotiable and those who contributed to weakening the institution will be held responsible.”
He further stated that President John Mahama remains resolute in ensuring that DBG fulfils its mandate to support Ghana’s transformation agenda.
“By Monday, a competitively selected CEO will be formally appointed, and by the end of October, the process of constituting the new Board will be completed.
“DBG’s Interim Board Chair, Albert Essien, reaffirmed the Bank’s commitment to transparency, accountability, and prudent governance. Our partners welcomed these measures.”
DBG was commissioned on 14th June 2022 by the then Governor of the Bank of Ghana, Dr Ernest Addison.
Dr Addison said at the time that “Provisions on corporate governance structures have been strengthened under the Act. As a result, the Ownership, Governance and Operational Structures of DBG have been carefully designed to ensure that DBG is managed professionally to successfully carry out its economic transformational mandate. As the regulator, the Bank will deploy the requisite tools to ensure effective regulation and supervision of DFIs. Starting with the DBG, the Bank will also ensure that DFIs in Ghana operate in a financially sustainable manner, to achieve the development mandate, foster confidence, and attract more investments into the economy to support growth.
“On this very issue, I wish to reiterate that the Bank of Ghana will hold the DBG to the same regulatory and supervisory standards that it holds banks and SDIs, while at the same time maintaining oversight of the Participating Financial Institutions (PFIs) that DBG will be working with. The Bank of Ghana will strive to work in close partnership with DBG to achieve this, from two key angles. First, in helping to safeguard and protect.
“DBG’s governance structures, and second, in working to create the right enabling environment both for DBG and its partners. The DBG, alongside its partners, has the potential to be truly a catalytic entity in Ghana’s economic transformation. On behalf of the Bank of Ghana, I would like to reaffirm our commitment to supporting DBG in its mission. The relevance of the DBG is now needed more than ever and I urge all stakeholders to put in maximum efforts at making this work, this time round.”
