One of the flagship programmes of the erstwhile government, the One District One Factory (1D1F) has come under heavy scrutiny after an audit revealed what officials have described as a fictitious GH¢89.4 million debt linked to the initiative.

1D1F initiative, a flagship policy of former President Nana Akufo-Addo and the New Patriotic Party (NPP), was designed to accelerate industrialisation by establishing at least one factory in every district.

Presenting the results of the findings on the floor of Parliament in a statement delivered by Deputy Finance Minister Thomas Nyarko Ampem on behalf of Dr Cassiel Ato Forson.

The Finance Minister indicated that in 2024, the Ministry of Trade and Industry requested the release of GH¢89.4 million to five commercial banks as the government’s contribution toward interest payments under the 1D1F programme.

The Ministry of Finance processed the request and sent it to the Controller and Accountant-General’s Department for payment.

However, when auditors from the Ghana Audit Service, working with international firms Ernst & Young and PwC, reached out to the banks to confirm the claims, all five institutions reportedly denied that the government owed them any funds under the scheme.

“According to the auditors, the said GH¢89.4 million debt was fictitious,” the statement told Parliament. “Without the audit intervention, a whopping GH¢89.4 million of hard-earned public money could have been disbursed to settle this non-existent liability.”

The audit also flagged another suspicious transaction: a reported GH¢10.5 million payment into a so-called “Buffer Account” at a commercial bank.

According to the report, a follow up to authenticate the transaction to the banks, it was confirmed they never received any payments.

Further investigation revealed that the account number provided did not exist in the bank’s records and did not follow its account numbering format.

“The evidence from the audit pointed to a completely fictitious account,” the statement added.

In response, the government has announced plans to conduct a full forensic audit of the entire One District One Factory programme.

Mr. Ampem emphasised the importance of the review, given the large sums involved, noting that about GH¢391 million had already been disbursed in interest subsidies for the programme by the end of 2024.

“Mr Speaker, only God knows how much of taxpayers’ money has been lost to similar fictitious claims,” he said.

Minister of Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare, revealed that the erstwhile government's One District One Factory (1D1F) policy had been scrapped.

The minister announced this when she appeared before Parliament on Tuesday, June 8.

“Mr Speaker, I want to draw the House’s attention to the fact that as of now, there is no policy as 1D1F,” the minister said.

She added that “The 24-hour economy policy was the new thing on the block and the game changer, which sought to make Ghana very vibrant irrespective of the minute of the hour or the time of the day.”

In reaction, Minority Leader Alexander Afenyo-Markin quizzed, “Is the ministry, MOTAI, exploring the establishment of new industrial parks as part of a revised investment attraction strategy?”

The Trade Minister replied: “We are doing agro-parks which seek to be a great game changer, especially in the agro-processing zones, and it is being worked on to ensure we are able to produce around the clock for import substitution, export, foreign exchange, and to create jobs for our teeming youth."

Earlier this year, Elizabeth Ofosu-Adjare stated that the National Democratic Congress’ (NDC) proposed 24-hour economy initiative would enhance the effectiveness of the One District, One Factory (1D1F) programme.

During her appearance before the Appointments Committee on Wednesday, January 22 for vetting after her nomination, she underscored the shortage of sufficient raw materials as a major hurdle undermining the success of the 1D1F initiative.

She emphasised that the adoption of the NDC’s 24-hour economy policy would serve as a strategic measure to overcome this challenge.

She said, “The solution lies in the 24-hour economy, where businesses will have access to a steady supply of raw materials. Agribusiness will play a crucial role through commercial contract farming, which will substantially resolve the raw material challenge.”

The Techiman North Member of Parliament further said, “These factories will benefit from tax holidays and other incentives under the 24-hour economy framework.”

The One District, One Factory (1D1F) initiative, introduced by former President Akufo-Addo, aimed to revolutionise Ghana's economy by minimising dependence on raw material exports and imported finished products.

The programme emphasised industrial growth, value enhancement, employment generation, and the export of refined goods.

Although several factories were set up under the initiative, its progress was hampered by numerous challenges.