Ghana: Deputy Finance Minister on Accountability in Governance.

Governance and Accountability: Insights from Deputy Finance Minister

Emphasizing Accountability, Responsibility, and Transparency.

In a recent address, Deputy Minister of Finance Thomas Ampem Nyarko articulated the vital role of governance, emphasizing accountability, responsibility, and transparency as foundational principles. These principles, he argued, are crucial in averting the institutional decay that can lead to broader national challenges. His insights come at a time when governance issues have had profound impacts on the nation's economic health.

The Root Causes of Economic Challenges.

Mr. Ampem Nyarko identified several root causes behind the nation's economic difficulties prior to 2025. Weak internal controls, poor risk management, and a lack of accountability at leadership levels were pinpointed as key issues. These factors contributed to surging inflation, currency volatility, and debt restructuring, leading to financial losses, job insecurity, and a decline in public trust. He stressed that institutions do not collapse overnight; instead, they gradually weaken when governance is neglected.

45th Hydro AGM: Strengthening Governance.

Addressing the 45th Annual General Meeting (AGM) of the Hydro Co-operative Credit Union Limited (HCCUL), Mr. Nyarko discussed "Strengthening governance and accountability for members’ confidence." Established in 1971 by the Volta River Authority (VRA) staff, HCCUL aims to provide financial freedom for its members. Today, it serves over 11,300 members, including those from the VRA, GRIDCO, and Bui Power Authority, reflecting its commitment to inclusive finance.

Inclusive Finance and Credit Unions.

The Deputy Minister highlighted the critical role of the Credit Union movement in Ghana, underscoring its contribution to inclusive finance. With more than 700 Credit Unions nationwide serving over a million members and managing assets exceeding GH¢3 billion, these institutions have made significant inroads in underserved communities. Mr. Nyarko emphasized the necessity of reinforcing governance within credit unions like HCCUL, starting with robust board governance.

Key Elements of Strong Governance.

1. Board Effectiveness: Ensuring board members possess the necessary competence, independence, and accountability. Clear separation between oversight and management is essential for effective governance.
2. Financial Discipline: Accurate financial reporting, rigorous internal audits, and a zero-tolerance policy for fund misappropriation are critical. Maintaining financial integrity is non-negotiable.
3. Sound Risk Management: Implementing prudent lending practices and continuous portfolio monitoring to mitigate excessive risks that could destabilize the institution.
4. Transparent Communication: Promoting inclusive decision-making processes and upholding members' rights to build trust and confidence.

Solidarity and Achievements.

Desmond Kuranchie Mensah, representing the CEO of Credit Union Associations (CUA), praised HCCUL for its strong performance in capital adequacy, liquidity, and profitability. These achievements were attributed to their commitment to robust governance and accountability practices. By focusing on these elements, institutions can build resilience and foster trust among their members, ensuring long-term success and stability.