In a significant development within Ghana’s financial and legal landscape, the Attorney-General and Minister for Justice, Dr. Dominic Ayine, has offered a comprehensive explanation of the rationale behind the discontinuation of criminal proceedings against former Finance Minister Dr. Kwabena Duffuor and seven others. The decision, formalized through a nolle prosequi—a legal notice to discontinue prosecution—has sparked widespread interest and debate. Speaking at a sectoral update on Monday, July 28, Dr. Ayine elaborated on the structured repayment arrangement that underpinned this decision.
The Structured Settlement Proposal: A Path to Recovery
At the heart of this development lies a negotiated settlement aimed at maximizing asset recovery while addressing the complexities of the case. According to Dr. Ayine, after protracted discussions, the accused proposed a structured repayment plan to settle their revised obligations, which amounted to GH¢3.3 billion. The proposal included a commitment to repay GH¢2 billion as full and final settlement through a combination of asset transfers and assistance in recovering funds from third parties.
“By a letter dated May 7, 2025, the accused persons proposed to pay GH¢2 billion through a structured arrangement,” Dr. Ayine disclosed.
The specifics of the arrangement included:
- Asset Transfers: The accused agreed to transfer GH¢800 million worth of assets directly to UniBank, which is currently under receivership.
- Third-Party Recoveries: They also committed to recovering an additional GH¢1.2 billion from third-party beneficiaries who had received payments under their instructions.
Significant progress has already been made under this arrangement. Dr. Ayine revealed that GH¢844 million in landed properties has been handed over to UniBank, while GH¢500 million has been retrieved from third-party recoveries. The remaining GH¢700 million is expected to be recovered over an 18-month period, alongside proceeds from asset sales.
Key Factors Influencing the Decision
The Attorney-General’s Office weighed several critical considerations before opting to discontinue the criminal case. These include:
1. Fictitious Accounting Entries: The receiver of UniBank identified that fictitious accounting entries inflated the bank’s assets by approximately GH¢2.1 billion before its placement under official administration.
2. Pending Civil Claims: A GH¢300 million claim filed by the receiver in 2019 with the Official Liquidator remains unresolved under the insolvency process.
3. Prolonged Litigation: The combined civil and criminal proceedings have spanned over six years, yielding limited results due to the complexity of the cases and difficulties in tracing assets early on.
4. Risk of Diminishing Returns: Dr. Ayine emphasized that continued litigation posed a risk of diminishing net recoveries, potentially undermining the objectives of Ghana’s financial sector reforms.
Balancing Justice and Pragmatism
The discontinued case—The Republic v. Kwabena Duffuor & 7 Others (CR/0248/2020)—was one of several initiated during Ghana’s financial sector clean-up. This broader initiative sought to recover public funds and ensure accountability for financial mismanagement. However, the government had set a 60% recovery threshold as a benchmark for reassessing the need for prosecution.
Dr. Ayine underscored that discontinuing prosecution does not absolve individuals of accountability but reflects a pragmatic approach to achieving financial restitution in complex cases.
“It is important to make clear that when someone is charged with causing financial loss to the state, it does not imply that they took the resources that have been lost,” he clarified.
Implications for Ghana’s Financial Sector
This decision highlights the intricate balance between pursuing justice through litigation and achieving tangible recovery of public funds. While criminal prosecution serves as a deterrent and reinforces accountability, prolonged legal battles often entail high costs, uncertain outcomes, and delays in asset recovery.
By prioritizing structured settlements and collaborative recovery efforts, Ghana’s government demonstrates its commitment to financial sector reforms while navigating the practical challenges of complex litigation.
Conclusion
The discontinuation of criminal proceedings against Dr. Kwabena Duffuor and others represents a calculated decision aimed at maximizing recoveries from Ghana’s financial sector clean-up. As Dr. Ayine articulated, this approach underscores the importance of pragmatism in addressing financial mismanagement while ensuring that public resources are restored to their rightful place.
Moving forward, this case serves as a reminder of the multifaceted nature of justice—one that balances legal accountability with economic recovery for the greater good of Ghana’s financial stability and development.
-Citinewsroom
Curated by Tetteh Belinda| GhanaCrimes
