Insider Trading: A Threat to Fairness in Ghana’s Public Procurement Processes

AG Godfred Yeboah Dame Raises Concerns

At the 40th Cambridge International Symposium on Economic Crime, Attorney-General and Minister for Justice in Ghana, Godfred Yeboah Dame, shared concerns over insider trading undermining the integrity of Ghana’s public procurement process.

Insider Trading - A Growing Trend

Insider trading, according to Dame, has become a significant issue in Ghanaian public institutions. Procurement officials are found selling confidential information to contractors and suppliers, which defeats the principle of fairness in the process.

“Corrupt activities persist despite the measures put in place to prevent them. Insider trading is a clear example of unethical behavior. Some procurement officers unfairly tip off contractors and suppliers about upcoming bids, handicapping fair competition.”

Godfred Yeboah Dame, Attorney-General and Minister for Justice

Negative Consequences

The negative consequences of such practices go beyond economic losses. According to Dame, insider trading harms development and undermines public trust in governance.

Example of Insider Trading

A shocking example of insider dealing, as recounted by the AG, was that of the former head of the Public Procurement Authority (PPA), Adjenim Boateng Adjei. Allegations arose that he had established a front company and used his position to gain government contracts for it, before selling them to other contractors at inflated prices.

Government Response

The government responded swiftly to these allegations. President Nana Akufo-Addo terminated Adjei’s contract, and he lost his memberships in various professional institutions as the prosecution proceeded.

Ongoing Trials

The AG further disclosed that there are ongoing trials in Ghanaian courts involving insider trading within the public procurement sphere.

Disclaimer

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