Plugging The $500 million A Year Leakages At The Tema Port

For eight years, the promises of the previous Akufo-Addo-led administration echoed through Ghana, a chorus of assurances that often rang hollow. While much of their rhetorics proved to be misleading, one stark reality consistently emerged: “Yete sika so nanso ekom de yen” to wit, Ghana possesses vast untapped wealth, yet its citizens remain mired in hunger and poverty.

This paradox demands immediate attention, requiring a meticulous investigation into the nation’s financial hemorrhaging and a robust strategy for leveraging its untapped potential.

A crucial point of entry into understanding this complex issue lies in the substantial financial leakages identified before the change in government several years ago. The then Mahama-led administration, in its final year in 2016, uncovered a staggering annual revenue loss of approximately $500 million at the Tema Port.

This alarming figure stemmed primarily from unpaid duties on goods stored in bonded warehouses, often belonging to large companies. While efforts were underway to recover these substantial debts, the transition of power prevented the complete realisation of these recovery efforts.

The scale of this loss is truly staggering when viewed in context. The expansion of the Tema Port itself cost a monumental $1.5 billion – a sum equivalent to three years’ worth of the uncovered revenue leakage.

This represents a colossal misallocation of resources, a financial hemorrhage that could have profoundly impacted the nation’s development trajectory.

To further underscore the gravity of this situation, consider that a single year’s worth of these lost revenues – $500 million – would have been sufficient to fund the construction of two state-of-the-art University of Ghana Medical Centres (UGMCs) every year, each costing an estimated $260 million.

This highlights a critical failure in governance and oversight. The sheer magnitude of the unpaid duties suggests a systemic flaw, perhaps involving collusion or a lack of effective enforcement mechanisms.

It raises serious questions about accountability and transparency within the import and export sector. The potential for similar leakages in other sectors of the Ghanaian economy is a significant cause for concern. This necessitates a comprehensive audit of all revenue streams to identify further potential losses and implement robust measures to prevent their recurrence.

The $500 million annual loss isn’t merely a financial setback; it represents lost opportunities for national development. Those funds could have been channeled into crucial infrastructure projects, healthcare improvements, educational initiatives, and poverty reduction programmes. Instead, these resources vanish, exacerbating the existing inequalities and hindering Ghana’s progress.

The paradox of a wealthy nation grappling with widespread poverty underscores the urgent need for reform. Ghana’s vast natural resources and strategic location offer immense potential for economic prosperity.

However, this potential remains unrealised unless decisive action is taken to address the systemic issues that allow for such significant financial leakages and to ensure greater transparency and accountability in the management of public funds.

Only through a rigorous commitment to good governance and the effective utilisation of national resources can Ghana truly unlock its potential and alleviate the hunger and poverty that plague its citizens. The story of the Tema Port leakages serves as a stark warning – a call to action.

By Anthony Obeng Afrane