The Development Bank Ghana (DBG) has rebutted allegations of misuse of funds intended for its developmental operations, following a recent article by social innovator and analyst Bright Simons, titled “There’s a Plot to Loot Ghana’s Top Development Bank.”
Simons’ article raised concerns around DBG’s procurement practices, vendor selection, treasury management, and transparency.
DBG denies claims
In response, DBG issued a statement calling the allegations “significant inaccuracies and falsehoods,” reiterating its commitment to transparency and its role in fostering economic transformation.
Addressing Simons’ claim of a supposed loss exceeding GH₵400 million through improper contracting, DBG emphasized that their procurement processes are “stringent and evolving in line with best global practices” and subject to external audits.
The bank clarified that its initial capital injection in 2021 was GH₵1.135 billion (roughly $200 million) from the government, followed by an additional GH₵268.6 million from the African Development Bank.
DBG also rejected Simons’ assertion that it had incurred GH₵700 million in losses, instead highlighting a net profit of GH₵80.1 million in 2023, with projected profitability for 2024 despite economic challenges.
Transparency over foreign funding use
DBG further disputed claims that funds from international development partners, including the World Bank and the European Investment Bank (EIB), were misused.
According to DBG, funds from these institutions are disbursed strictly for on-lending to participating financial institutions (PFIs), not for administrative or operational expenses.
“The World Bank, the EIB, and other providers of funds to DBG regularly monitor the use of such funds and issue reports on the results of such monitoring,” DBG emphasized, underscoring their compliance with global financial standards.
Governance structures and internal audits
To address concerns about its governance, DBG noted it operates under a robust structure, including rigorous procurement policies and internal audits that report directly to the board.
The bank clarified that the document cited in the allegations is neither an approved nor finalized audit, adding that the report will undergo board review at DBG’s next scheduled meeting.
DBG affirmed its commitment to providing clarifications to the public on any inaccuracies to maintain transparency.
A model for development financing in Ghana
DBG was established under the Development Finance Institutions Act, 2020 (Act 1032) to serve as a wholesale development finance institution, channeling medium- to long-term financing to key sectors such as agribusiness, manufacturing, ICT, and services.
Its mandate is to support Ghana’s private sector and drive sustainable economic transformation.
The bank concluded that its model and governance structure align with globally recognized frameworks used successfully by development banks worldwide, signaling confidence in its operational resilience and commitment to Ghana’s economic advancement.
