Ghana's Auditor-General has revealed that the government could have saved approximately GHS 94.6 million on the Green Ghana Project. This significant financial loss resulted from the Ministry of Lands and Natural Resources (MLNR) changing its seedling procurement strategy. The ministry opted to purchase seedlings from a private company at much higher prices, abandoning its previous engagement with Local Seedling Suppliers (LSSs).
The findings are detailed in the Performance Audit Report on the Management of the Green Ghana Project. This report assessed the nationwide afforestation programme's implementation from 2021 to 2024. Procuring seedlings through LSSs would have been more economical, according to the report. This approach would also have supported the project's objective of improving local community livelihoods.
This situation highlights broader concerns about public procurement practices and value for money in government projects. Ghana's economic landscape often faces scrutiny regarding efficient resource allocation and fiscal discipline. The Green Ghana Project, a flagship environmental initiative, aims to restore degraded lands and combat climate change. Its financial management is crucial for public trust and the project's long-term success.
The Auditor-General's report explicitly states, "there is no assurance that the procurement processes used by the subcommittee and the Chief Director of the MLNR guaranteed value for money in the procurement of seedlings." This statement underscores a lack of transparency and accountability in the procurement decisions. It raises questions about the Ministry's adherence to established financial regulations.
The implications of this report are far-reaching for public finance and government accountability. Decision-makers will likely face pressure to review procurement policies and ensure stricter oversight of large-scale projects. The findings could also influence future budgeting for environmental initiatives, demanding greater justification for expenditure. Markets and the public will watch closely for responses from the MLNR and the government regarding these audit observations.
The audit found that the Ministry engaged Local Seedling Suppliers during the 2021 and 2022 editions of the project. However, it abandoned this arrangement in 2023 and 2024. Instead, the Ministry awarded the supply of approximately 11.1 million seedlings to Richie Plantations. This was done through a single-source procurement process, bypassing competitive bidding.
The Forestry Commission's approved prices for seedlings ranged between GHS 0.50 and GHS 1.50 per seedling. In contrast, Richie Plantations supplied similar seedlings at an average cost of GHS 9.50 per seedling. This cost included an average purchase price of GHS 5.50 and a fixed transportation cost of GHS 4. This price difference represents a significant markup compared to local supplier rates.
The Auditor-General's analysis showed that the government spent GHS 105.76 million on seedlings from Richie Plantations for the 2023 and 2024 editions. Had the Ministry procured these seedlings through Local Seedling Suppliers at approved prices, the total cost would have been GHS 11.13 million. This represents potential savings of GHS 94,629,505.50.
The procurement arrangement also undermined a primary objective of the Green Ghana Project. This objective was to enhance the livelihoods of Local Seedling Suppliers in rural communities. Their participation in seedling production and supply was crucial for local economic development.
The report noted that the Ministry claimed Local Seedling Suppliers lacked the capacity to produce the required seedlings. However, available records suggested otherwise. In 2022 alone, Local Seedling Suppliers successfully supplied 17.26 million seedlings. This represented about 65 percent of all seedlings planted under the project that year.
The annual target for both the 2023 and 2024 editions was 10 million seedlings. The Auditor-General concluded that the suppliers had demonstrated sufficient capacity to meet government demand. "This gives an indication that, contrary to the Chief Director’s claim, the Local Seedling Suppliers had the capacity to supply and deliver the seedlings for the 2023 and 2024 Green Ghana Project," the report stated.
The audit further revealed that while LSSs were excluded in 2023 and 2024, the government still owed them approximately GHS 39.5 million. This debt was for seedlings supplied during the 2021 and 2022 editions. 734 Local Seedling Suppliers had not been paid for over 16.1 million seedlings. Payment delays ranged between 36 and 48 months, causing severe financial losses.
Despite this outstanding debt to LSSs, the Ministry paid GHS 70 million to Richie Plantations for seedlings supplied for the 2023 Green Ghana Project. This disparity in payment priorities raises further questions about the Ministry's financial management and commitment to local businesses.
Beyond procurement, the Auditor-General identified weaknesses in the project's planning and implementation. The Ministry and the Forestry Commission failed to adequately plan for soil testing and soil-to-seedling species matching. This increased the likelihood of poor seedling survival, impacting the project's environmental goals. An example cited was at Kpligine community, where 80 percent of teak seedlings died due to unsuitable planting conditions.