Ghana's Auditor-General has reported that GHS 7,480,804.34 from the national plastic waste levy was misspent by the Ministry of Environment, Science, Technology and Innovation (MESTI) between 2021 and 2023. These funds, collected to support plastic waste management, failed to reach critical stakeholders in the recycling value chain or fund planned public sensitisation campaigns. The finding casts a shadow on Ghana's commitment to addressing its significant plastic waste problem.
This misdirection of funds leaves informal waste collectors struggling with high operating costs and failing equipment, like Daniel Holasi Frimpong's baling press machine in Kasoa. Collectors routinely finance their operations through personal savings and loans, even as falling prices for processed plastic erode their already slim profits. The lack of financial support directly impacts their capacity to process the 840,000 to 1.1 million tonnes of plastic waste Ghana produces each year.
This situation underscores a broader challenge within Ghana's environmental management and public finance accountability. The country recycles only 5% to 9.5% of its plastic waste, leaving over 85% improperly disposed of. This widespread pollution clogs urban drains, contaminates water bodies, and exacerbates flooding and health risks. The Plastic Waste Recycling Fund, established to mitigate these issues, relies on proceeds from a 10% Environmental Excise Tax on imported plastics, making its mismanagement particularly concerning for the nation's sustainable development goals.
The Auditor-General's 2024 performance audit highlighted MESTI's failure to develop crucial guidelines for fund utilisation as required by the Environmental Excise Tax Act, 2013 (Act 863). Ministry officials, including the Director of Policy Planning, Monitoring and Evaluation, reportedly admitted to auditors that clear directions for spending the fund were absent. This lack of guidance enabled the misapplication of funds, preventing them from supporting critical activities like equipment upgrades or promotion of biodegradable plastics as envisioned.
The continued release of funds to MESTI by the Ministry of Finance, despite MESTI's failure to submit expenditure returns, raises significant questions about oversight. This lapse prevents proper monitoring of fund usage and undermines accountability mechanisms. As a result, waste collectors, recyclers, and even the Accra Metropolitan Assembly's Waste Management Director, Engineer Solomon Noi, confirm they have received little to no benefit. The absence of a clear legal framework also hinders local assemblies from accessing these crucial funds from the Consolidated Fund.
Decision-makers must now address the transparency and accountability deficits within the Plastic Waste Recycling Fund. The Ministry of Finance must enforce strict reporting requirements for MESTI, and MESTI must establish clear guidelines for fund allocation. Failure to rectify these issues will continue to undermine Ghana's efforts to manage plastic waste effectively and support the vital work of informal waste collectors. Future actions will determine if Ghana can leverage its environmental levies to achieve tangible improvements in waste management and public health.