Michael Okeyere Baafi rejects ‘fictitious’ GHc89.4m 1D1F debt claim

Former Deputy Minister for Trade and Industry, Michael Okeyere Baafi, has dismissed claims that an audit uncovered a fictitious GH¢89.4 million debt linked to the government’s One District One Factory (1D1F) initiative.

Speaking on Newsfile on JoyNews, Mr. Baafi described the figures being circulated as misleading and said they do not accurately reflect the financial arrangements underpinning the programme.

According to him, the 1D1F initiative relied heavily on financial institutions that provided loans to beneficiary companies, while the government supported the process through guarantees and interest support mechanisms.

He explained that under the programme’s structure, banks assessed and financed projects, with the state helping to reduce borrowing costs to encourage private sector investment.

Mr. Baafi argued that the GH¢89.4 million referenced in the audit should not be described as a fictitious liability, stressing that the amount relates to normal financial transactions within the banking framework of the programme.

He also criticised how the audit findings were presented to the public, saying the explanation provided failed to reflect the practical financing structure of the 1D1F policy.

“In a nutshell, what I am trying to say to you is that there is nothing like GH¢89.4 million which is there as a fictitious debt; clearly it is misleading,” he said.

He further accused the current administration of attempting to shift attention through what he described as diversionary tactics.

“We (the former administration) can confidently tell him—the current finance minister—that this is diversionary tactics; they know they are just trying to shift the system,” he argued.

The One District One Factory policy was introduced by the New Patriotic Party (NPP) administration to promote industrialisation by establishing at least one factory in every district in Ghana.

The initiative was intended to boost local manufacturing, create jobs and stimulate economic growth, although the programme was not fully implemented before the NPP administration completed its eight-year tenure in office.