The management of Development Bank Ghana (DBG) has clarified that the document which is the basis of publications in the media is not an approved, final, or concluded one.
“As part of the internal audit process, this document is scheduled to be examined by the DBG Board at the next meeting scheduled for this month. In line with our commitment to transparency, we are however providing clarifications on a few of the inaccuracies published.
“Recent statements made in the media regarding Development Bank Ghana’s operations and governance have come to our attention, considering the significant inaccuracies, misleading information, and falsehoods in these publications,” a statement issued by the DBG has stated.
The statement said the DBG or the bank was established as a wholesale Development Finance Institution (DFI) under the Development Finance Institutions Act, 2020 (Act 1032), with a mandate to accelerate Ghana’s economic transformation.
Regarding the false publication that the bank was capitalised with US$750 million and an additional GH¢1 billion, the DBG explained that it could be easily verified from the publicly available audited financial statements, DBG was initially capitalised in 2021 by the Government of Ghana (GoG), with an amount of GH¢1.135 billion, equivalent then to US$200 million.
The capital was subsequently increased by GH¢268.60 million (equivalent to US$38.3 million at that time) from the African Development Bank (AfDB) through the Government of Ghana (GoG).
To another aspect of the false media publication that over GH¢400 million of the (mythical) US$750 million has been lost through improper contracting, it noted that the allegation did not stand up to any of the several external audits including the regulatory audit. “Our procurement processes remain stringent, rigorous, and evolving in line with best global practices.”
False Statement 3: DBG has reported losses of GH¢700 million, again, the facts are easily obtainable from DBG’s audited financial statements where the DBG has consistently reported net profits annually since its inception in 2021.
Regarding the false claims that the DBG’s governance structure has been undermined or manipulated leading to a fight-for-turf between Internal Audit and Management plus an ineffective procurement process, it said in the short three years since its creation in 2021, DBG has installed the necessary strong governance structures, systems, and processes to help assure the efficient achievement of its mandate to catalyse the economic transformation of Ghana.
“These include well- defined procurement policies and processes and robust systems of internal control, including a strong internal audit function that works together with management and reports regularly and directly to the Board of Directors.
The independence of the Internal Audit function is not only enshrined in the governance structure of DBG but is consistently and strongly affirmed by the Board of Directors.”
The annual work programme of Internal Audit, the DBG explained was approved by the Board of Directors stating that in this regard, it is worth noting that the Procure-to Pay audit report mentioned in the press reports was the result of the work programme approved by the Board in 2023. The Internal Auditor issued the report in July 2024 and submitted it to the Finance and Audit Committee of the Board for examination.
On allegation that the DBG has misused or misapplied funds from the World Bank and the European Investment Bank (EIB), the DBG emphatically refutes this assertion and finds it very misleading. We take seriously the prudent use and application of funds.
BY TIMES REPORTER
