Ghana infrastructure spending raises corruption concern

Joseph Cudjoe, a former Public Enterprises Minister, has raised concerns regarding Ghana's budget priorities. He asserts that recent government budgets favor large infrastructure projects over social spending. This shift, he notes, comes with a significant risk of corruption and mismanagement.

Governance reports, including those from Transparency International, indicate that rent-seeking in such projects can range from 30% to 50% of the total project cost. This means for projects worth billions, a substantial portion could potentially be siphoned off. For example, a planned GHS30 billion allocation for the 'Big Push' could see GHS9 billion to GHS15 billion lost. Similarly, GHS19.5 billion to GHS32.5 billion could be at risk from a GHS65 billion allocation for 73 road projects.

Cudjoe suggests that social spending areas, like Free SHS or school feeding, offer fewer opportunities for such financial irregularities compared to large construction contracts. He observes that while infrastructure spending is accelerating, wage growth for public servants remains constrained. Social interventions are also not expanding at the pace seen in previous administrations. Payments directly supporting households are often delayed or limited.

He questioned whether the infrastructure push is happening at the expense of Ghanaian welfare. Cudjoe highlighted that job creation initiatives, such as the 1-3-3 policy under the 24-Hour Economy framework, have also not received significant budgetary allocation despite earlier promises. This contrasts with past programs like the Nation Builders Corps, which provided direct income support.

Cudjoe emphasized that economic management should balance both infrastructure development and the well-being of citizens. He called for a development path that equally supports both people and infrastructure, echoing his experience during the Nana Addo-Bawumia administration.