‘demo-CASH-y’: how illicit cash is eroding Ghana’s democracy, and CSOs push for change

In the unfolding chapters of Ghana’s political narrative, the Fourth Republic stands as a resilient 32-year era, solidifying its position as the time-honored beacon of democracy in the nation’s 67-year history.

Dominated by the New Patriotic Party (NPP) and the National Democratic Congress (NDC), this political stage has witnessed a smooth exchange of power, with each party managing the nation’s destiny for a 16-year span.

Across the pages of eight general elections, a major presidential runoff, and the rare occurrence of two election petitions, Ghana’s political script is carefully written, placing the nation as a stronghold of peace and democracy.

While the world admires Ghana’s political stability, the lurking shadows of corruption, monetisation of elections and Serious Organised Crime (SOC) threaten to tarnish the nation’s moral fabric, questioning the authenticity of its hard-earned acclaim.

Democracy turned demo-cash-y

Since Ghana’s Fourth Republic began in 1993, the influence of money in its politics has grown significantly in what could be described as ‘Demo-cash-y’; rightly so because the country’s democracy has been influenced by cash.

A study by the Westminster Foundation for Democracy and the Ghana Centre for Democratic Development found a 59% increase in the cost of running for parliament from 2012 to 2016.

The present cost of running for parliament in Ghana, as estimated by this study is GHC 4million ($693, 0002). GHC 2 million of that sum is spent nurturing the constituency of interest and running for primaries and the other GHC 2million is calculated to be expended during the general election campaign.

Moreover, it is estimated that to have a viable shot at the presidency running on the ticket of either the NDC or the NPP, a candidate needs to raise and spend about GHC 575 million ($100m). The rising cost of politics in Ghana was found to be linked to both demand-driven and supply-side corruption.

Per the report, dirty money, including funds from criminal activities like illegal mining and fraudulent business, has infiltrated campaign financing, facilitated by a lack of transparency and regulatory oversight. This poses a threat to Ghana’s democracy, governance, and development.

Identifying the sources and recipients of dirty money in politics is challenging due to its opaque nature. Despite limitations, the report indicates a clear connection between campaign finance and SOC in Ghana.

Serious organised crime

 Serious organised crime (SOC) encompasses various illegal activities perpetrated by structured criminal groups seeking substantial profits, operating on an international scale and exploiting vulnerable populations, contributing to violence, instability, and undermining the rule of law.

At a workshop held in February on how SOC plays out in Ghana, the Deputy Head of Legal and Prosecutions at the Economic and Organised Crime Office (EOCO), Leo Antony Siamah explained that the perpetrators prey on the economic hardship of individuals, systemic injustices and lack of employment opportunities to push people into organised crime.

Mr Siamah said EOCO had extended its focus to sectors like law firms, retail businesses, and accounting firms, where organised crime groups were laundering money and operating covertly.

The current alleged money laundering allegation against Former Sanitation Minister, Cecilia Dapaah, being investigated by the EOCO stands as a recent example of this subject matter.

Sources of funding

Back to the CDD-Ghana report, it highlights concerns regarding the funding sources of political parties and candidates in Ghana, suggesting that the exorbitant cost of politics has led to an influx of illicit funds.

The study identifies nine financiers engaged in criminal activities, including serious organised crime such as illegal mining and fraudulent business practices.

In a country where ballot boxes are transparent and political actors expect accurate poll numbers from the Electoral Commission, the campaign purses of politicians are opaque and their financial numbers understated.

This is because Political Party Acts Political Parties Act, 2000 (Act 574) only mandates political parties to submit their audited official financial accounts to the Electoral Commission (EC) and not a disclosure of funding sources for presidential and parliamentary candidates.

According to the CDD report, reforming Ghana’s campaign financing system is crucial to combating corruption, reducing the monetisation of elections including vote buying; the pervasive corruption, and improving democratic integrity and governance.

With the 2024 national election approaching, there are apprehensions that political spending will escalate and potentially attract support from individuals involved in criminal enterprises because of the heightened desire by the NPP to break the eight year political cycle and the resolve by the NDC to avert it.

It is clear that urgent advocacy is needed to address these challenges and prevent the aftermath of the election from burdening the Ghanaian populace.

The 3 CSOs

At the forefront of a proactive movement to cause a change is the collaboration between Ghana Anti-Corruption Coalition (GACC), the Africa Centre for Energy Policy (ACEP) and the Ghana Integrity Initiative (GII) with funding support from the Foreign, Commonwealth & Development Office.

The consortium aims to increase media and public awareness of serious organised crime threats to catalyse a shared commitment to combat corruption, promote transparency, and safeguard the integrity of the elections.

Radio programmes have been held in Greater Accra, Central, Volta, Ashanti, Western and Eastern Region where officials from the consortium educated listeners on topics including nature of SOCs, activities that are classified as SOC, linkage between SOC and elections, cost of elections and Issues of campaign finance, role of the state and citizens.

Three Zonal Workshops aimed at empowering youth leaders have been held across the country, including Kumasi, Takoradi, and Tamale with over 196 participants, drawn from a diverse spectrum including youth groups, political parties, and traditional associations.

 Vote buying  

Speaking at the same workshop, where an EOCO official spoke, the Director of Strategy and Communications at the Office of the Special Prosecutor, Sammy Darko, in his presentation, showed media videos on how politics in Ghana had been monetised.

The videos portrayed the extent of vote buying in Ghana’s politics and the need for journalists to probe this issue on the ground as well as help the office in its quest to nib the practice in the bud.

Push for change

The Executive Secretary of the GACC, Beauty Narteh, advocated an amendment of the Political Parties Act, 2000 (Act 574) to include the disclosure of funding sources for presidential and parliamentary candidates.

Currently, the law mandates political parties to submit their audited official financial accounts to the Electoral Commission (EC), but she believes that the actual campaign funds often bypass these official accounts and are independently managed by candidates.

Additionally, the law forbids the involvement of foreigners in the country’s politics, however, that could not be discovered, and a change in the laws or public accountability by political contestants is, therefore, the way to go to avoid the situation where foreigners could dictate the outcome of elections.

Mrs Narteh also called for the strengthening of the asset decla­ration laws and the passage of the Conduct of Public Offices Bill in order to prevent public officials from using their positions for personal gain.

Participants views, resolve

A communique issued after the workshop conveyed concerns of journalists and other participants about the looming threat SOC poses to the integrity of the country’s elections.

They identify weaknesses in legal, policy, and operational frameworks, including the lag in law enforcement capabilities, technological challenges, as factors allowing profit-seeking organised crime groups to interfere with electoral processes.

Based on these, the communique highlighted the resolve of journalists to utilise media platforms to confront SOC issues, consider the needs of law enforcement in reporting, and to be more diligent in covering SOC and electoral issues.

Way forward

Recommendations include equipping law enforcement with high-tech crime units, providing cyber sensitivity training, collaborating with stakeholders for public education, and implementing legal reforms to ensure transparency in campaign financing by political parties.

As Ghana stands at the precipice of another crucial electoral cycle, the imperative to combat the insidious influence of serious organized crime on its democratic processes has never been more pressing.

With collaborative efforts and steadfast resolve, Ghana can fortify its democratic institutions, root out corruption, and pave the way for a future where the voice of the people reigns supreme, untainted by the shadow of illicit influence.

BY JONATHAN DONKOR