Former Deputy Minister Michael Okyere Baafi Rejects 1D1F Corruption Allegations, Questions Audit Credibility
Michael Okyere Baafi, former Deputy Minister of Trade and Industry, has dismissed recent allegations of corruption linked to the One District One Factory (1D1F) programme, questioning both the credibility and timing of an audit reportedly uncovering financial irregularities.
Speaking to journalists in Koforidua, Okyere Baafi described the claims as misleading and lacking transparency, noting that the full audit report had not been made public. He called on the government to release the complete document for scrutiny.
The former deputy minister, who also serves as the Ranking Member on Parliament’s Trade and Industry Committee and MP for New Juaben South on the ticket of the New Patriotic Party, argued that the 1D1F programme’s structure did not allow for misuse of funds.
He explained that the government’s role under the initiative was limited to subsidising 50% of interest on loans provided by commercial banks to participating companies. However, he emphasised that no loans were actually disbursed, meaning there was no interest payment to subsidise.
“There was no loan advanced, so there was no interest to pay,” he said, adding that suggestions of misapplied public funds were inaccurate.
Okyere Baafi also criticised the audit process itself, asserting that the lack of access to the report undermined its credibility. “The auditors didn’t do well… there’s no report; we don’t have access to it,” he stated.
He further accused the government of attempting to create a narrative that the previous administration mismanaged public funds. “We should not create the impression that the old government mismanaged funds,” he said.
His comments follow disclosures made by the Ministry of Finance during a statement delivered in Parliament on March 10, 2026, by Deputy Finance Minister Thomas Ampem Nyarko on behalf of Finance Minister Cassiel Ato Baah Forson.
According to the ministry, out of GH¢68.7 billion in public claims submitted for audit, GH¢45.4 billion was validated for payment, GH¢8.1 billion rejected due to irregularities such as unsupported documentation, duplicated claims, inflated figures, and payments for unexecuted projects, while GH¢13.2 billion was flagged for further investigation.
Nyarko explained that the review uncovered systemic weaknesses allowing practices such as fictitious claims, recycled invoices, forged store receipts, and collusion between contractors and some public officials.
In response, the government has introduced a “triple-lock” accountability framework requiring thorough verification processes before public payments are approved.
