International Monetary Fund (IMF)An International Monetary Fund (IMF) Technical Assistance Report has raised serious concerns about the lack of strong safeguards against arbitrary removal of heads of anti corruption agencies in Ghana, warning that undue discretion in dismissals could compromise institutional independence. The report titled Governance Diagnostic Assessment March 2024 identified significant vulnerabilities in the security of tenure for key accountability officials.
The assessment found that only the Special Prosecutor and Deputy, the Auditor General, and Commission on Human Rights and Administrative Justice (CHRAJ) Commissioner and Deputy Commissioners enjoy legally or constitutionally established tenure periods and may only be removed for cause through a procedure involving a formal investigation conducted by another independent body. These protections ensure officials can perform their duties without fear of politically motivated dismissal.
However, board members of the Office of the Special Prosecutor (OSP), National Audit Service (NAS), and the boards and chief executive officers or directors general of Financial Intelligence Centre (FIC), Right to Information Commission (RTIC), Internal Audit Agency (IAA) and Public Procurement Authority (PPA) may be removed by presidential decision. The report emphasized that this arrangement creates significant risks to institutional independence and effectiveness.
Undue discretion and possible arbitrary removals are especially concerning regarding officials or bodies with operational and regulatory functions, the IMF report stated. For example, the PPA’s Board holds regulatory powers, reviews decisions by procuring entities and has other operational authority that could be compromised by vulnerability to arbitrary removal.
The report also highlighted concerns where boards hold decision powers that can compromise the autonomy of agency heads. The NAS’s Board appoints all personnel under the Auditor General and determines the structure, expertise and terms and conditions of service of officers and can issue regulations for the administration of the Audit Service. Such broad powers in the hands of a board vulnerable to presidential dismissal could undermine the Auditor General’s independence.
The IMF diagnostic, prepared at the request of Ghana’s government, emphasized that independence may be compromised not only through appointment processes but also through inadequate protections against removal. The report noted that international standards call for anti corruption agencies and supreme audit institutions to have strong safeguards ensuring officials can only be removed for cause through transparent, due process procedures.
The assessment pointed to the 2020 unconstitutional dismissal of the Auditor General and the resignation of the first Special Prosecutor, who alleged government interference with his decision making, as examples suggesting significant problems remain to be addressed in protecting the independence of accountability institutions. These incidents highlighted the real world consequences of inadequate legal protections.
The report stated that it will be essential for the future operation of accountability agencies that they not only have, but are seen to have, meaningful operational independence from the executive. Financial autonomy, adequate powers and security of tenure are key mechanisms for strengthening independence, particularly for agencies like the OSP which was created mainly to address concerns about executive interference in the anti corruption fight.
The IMF emphasized that effectively addressing governance weaknesses requires well tailored and sequenced efforts, extensive outreach and willingness to challenge settled norms. Past efforts in Ghana and other countries have demonstrated that changing outcomes comes about through improving policies, institutions and incentives, but also requires engagement of public officials, power brokers, the private sector and various communities.
The report acknowledged that implementing deep governance reforms is not a risk free endeavor and may unsettle powerful vested interests whose reactions cannot be predicted. However, for Ghana to attain its full potential, it needs to build a new consensus that could dismantle many impediments to the quest for macroeconomic stability and growth.
Among the priority recommendations, the IMF called for strengthening anti corruption agencies’ independence by submitting to Parliament and approving amendments to ensure that removal of anti corruption agencies’ top officials can only be made on grounds specifically established by law and through procedures similar to those applicable to the removal of CHRAJ commissioners. The report recommended these reforms be implemented in the short term, within six to twelve months.
The diagnostic also recommended that presidential appointments of anti corruption agency heads be approved by a qualified majority of members of Parliament, providing an additional check against undue executive influence. This would complement protections against arbitrary removal by ensuring appointees enjoy broader political support and legitimacy.
The 2011 Constitution Review Commission recommended extending safeguards similar to those enjoyed by the Auditor General to other independent constitutional bodies. It also recommended that removal procedures for heads of constitutional independent bodies should follow the same rigorous standards requiring formal investigation and just cause. This was accepted by the corresponding White Paper issued by the Government in 2012, but has not been implemented.
The IMF assessment was conducted by an interdepartmental team from the Legal Department, Fiscal Affairs Department and Monetary and Capital Markets Department following missions to Accra in September and October 2023. The team met with heads and senior staff of key institutions including the Office of the Special Prosecutor, Commission on Human Rights and Administrative Justice, National Audit Service, Ghana Revenue Authority and Public Procurement Authority.
The report noted that anti corruption institutions consistently receive significantly less budgetary funds than amounts appropriated by Parliament and there are no legal safeguards to prevent or remedy this practice, impacting their operational capabilities. Between 2016 and 2023, agencies only received an average of 51 percent of the funds appropriated for them each year by Parliament.
The diagnostic emphasized that successive administrations have fallen short in providing adequate financial support to existing anti corruption institutions, invariably undermining their operational independence. There has also been a failure of the institutions themselves to provide the necessary transparency concerning their operations.
The findings inform Ghana’s governance and anti corruption reforms under the Extended Credit Facility Arrangement with the IMF. The authorities are implementing ambitious structural reforms in tax policy, revenue administration and public financial management. The diagnostic will crucially support key program priorities on public procurement, domestic arrears clearance strategy, anti corruption and revenue administration.