Ghana’s Institutions Struggle to Handle Cash Influx from Extractive Industries

Despite being a compliant country with the Extractive Industries Transparency Initiative (EITI), Ghana’s institutions are facing challenges in handling the large amounts of cash generated from oil and gold production. The government has been criticized for its lack of transparency in managing these funds, particularly when it comes to financial records associated with gold mining and logging.

Weak Anti-Corruption Framework

According to a recent report by Global Integrity, Ghana’s anti-corruption legal framework is strong on paper but weak in practice. While the Criminal Code criminalizes corruption and bribery, enforcement remains a challenge. The government has also failed to address cronyism, nepotism, and patronage, which are seen as major obstacles to transparency and accountability.

• Civil servants are not prohibited from entering the private sector after leaving office, creating conflicts of interest and potential avenues for corruption.
• The Whistleblowers Law is in place, but many Ghanaians are reluctant to speak out against corruption due to fear of retribution and concerns about their personal and job security.

Media Environment

Ghana’s media environment is considered “free” by Freedom House, with numerous private radio stations and independent newspapers and magazines. However:

• Some private outlets with political connections face editorial pressure, and journalists practice self-censorship.
• State-owned media has also been criticized for its lack of independence and critical reporting on government activities.

Civil Society

Ghana’s civil society has developed mostly in urban areas, with NGOs playing an important role in ensuring government accountability and transparency. However:

• The country still lacks a comprehensive freedom of information law, leaving public requests to access government information dependent on institutional goodwill.
• NGOs face challenges in accessing government information and resources.

Recommendations

The Bertelsmann Transformation Index 2016 noted that Ghana’s institutions are not equipped to handle the influx of cash from extractive industries, which has led to corruption and mismanagement of funds. To address this:

• The country must strengthen its anti-corruption framework.
• Financial reporting must be more transparent.
• Whistleblowers who speak out against corruption must be protected.

Conclusion

While Ghana has made significant progress in establishing institutions and laws to combat corruption, more needs to be done to ensure that these institutions are strong enough to handle the large amounts of cash generated from extractive industries. The government must prioritize transparency, accountability, and whistleblower protection to build trust with its citizens and demonstrate its commitment to combating corruption.