A comprehensive audit into the 13th African Games hosted in Accra has uncovered financial irregularities totaling GH¢580,042,347.40, exposing widespread concerns over inflated contracts, unsupported payments, procurement breaches, overpricing, and weak financial controls across multiple sectors of the Games organisation.
The special audit, conducted by the Audit Service of Ghana following a directive by President John Dramani Mahama, examined procurement processes, operational spending, infrastructure contracts, broadcasting arrangements, accommodation, catering, and logistics linked to the continental sporting event.
The findings highlighted questionable expenditures involving catering services, anti-doping contracts, accommodation, sports equipment procurement, transportation, infrastructure variations, broadcasting agreements, and cash management systems.
Catering Costs and Unsupported Expenditure
One of the largest irregularities identified involved catering services valued at GH¢33.9 million. According to the audit, the catering cost summary submitted by L and M included several non-food cost components without adequate supporting documentation.
These included transport and logistics expenses, utilities, infrastructure and equipment costs, staffing, and project management charges. Auditors noted that these expenses were embedded within the catering contract without detailed cost schedules, independent verification, or evidence of actual expenditure.
The report further observed overlaps between these services and other contracts already awarded to separate providers, raising concerns about duplicated costs.
Anti-Doping and Sports Equipment Overpricing
The audit also revealed substantial overpricing in anti-doping services procured for the Games. The Ministry contracted Omni Speciality Product Limited for anti-doping tests at a total value exceeding EUR739,000.
However, benchmark comparisons against rates from internationally accredited laboratories reportedly showed inflated pricing differences amounting to more than GH¢8 million.
Sports equipment procurement also recorded major discrepancies. Auditors compared equipment prices against African Sports Confederation market benchmarks and found significant variances in several sports disciplines including boxing, triathlon, hockey, and arm wrestling.
For example, boxing equipment reportedly priced above US$109,000 was benchmarked at approximately US$48,000, while triathlon equipment costing more than US$449,000 was compared against benchmark figures of roughly US$216,000. The cumulative overpricing identified exceeded GH¢3.8 million.
Another sports equipment contract involving Delovely Company Limited resulted in an overpayment of GH¢4.49 million after auditors discovered that some equipment had not been delivered while other listed items lacked proper specifications or supporting documentation.
Inflated Accommodation and Transport Contracts
Accommodation arrangements for athletes and officials also came under heavy scrutiny. The audit found that JDK Travel and Tours charged approximately US$150 per room per night for accommodation services covering 500 rooms over a 21-day period.
However, market verification conducted by auditors reportedly showed official hotel rates ranging between US$50 and US$70 per room. The resulting differential created inflated accommodation costs estimated at GH¢10.08 million.
Transportation contracts linked to the same company also recorded substantial irregularities. Auditors identified overpricing totaling GH¢13.1 million after comparing invoiced rates against prevailing market rental rates for vehicles used during the Games.
An additional GH¢2.2 million was classified as overpayment after invoice recalculations reportedly showed inflated quantities and incorrect usage computations.
The report also cited excessive rental charges involving event equipment suppliers. Services such as air conditioners, cocktail tables, flooring, and portable toilets were allegedly billed at rates far above benchmark market prices, resulting in excess costs exceeding GH¢239,000.
Unrelated Payments and Weak Cash Controls
The audit further questioned expenditures processed through the Local Organising Committee accounts that were reportedly unrelated to the 13th African Games.
According to auditors, more than GH¢15 million was spent on activities outside the approved Games mandate, including advance salary payments and disbursements connected to officials and staff of Ghana’s national football team, the Ghana national football team.
The report additionally highlighted weaknesses in sponsorship accounting systems. One broker who secured water sponsorship reportedly received cash compensation contrary to approved sponsorship brokerage principles.
Auditors also identified high risk cash withdrawals exceeding GH¢20.3 million from accounts linked to the African Union Sports Council operations. The withdrawals reportedly lacked supporting disbursement records, documented purposes, and corresponding electronic financial management approvals.
Weak cash management systems also resulted in unlodged funds amounting to approximately US$247,000. While management indicated that portions of the cash were used for refunds to participating countries, auditors stated that the transactions did not comply with Ghana’s Public Financial Management regulations.
Poor accounting practices were similarly identified in the sale of Game merchandise. The audit reported that T-shirts and souvenirs valued at more than GH¢27 million lacked inventory records, sales documentation, and evidence of deposited revenues.
Broadcasting and Media Contract Irregularities
The audit uncovered several irregularities involving broadcasting contracts and media operations. A contract awarded to The Production Room for training and equipment supply worth more than GH¢684,000 reportedly lacked evidence that the training services had actually been delivered.
Auditors said there were no attendance records, schedules, training materials, or certification documents to support the payments made. The report also found that several media service providers engaged by the Ghana Broadcasting Corporation operated without signed contracts clearly defining scope, pricing, or deliverables.
Broadcast management arrangements further resulted in major financial losses. While projected broadcast revenue for the Games was estimated at US$5 million, auditors reported that only US$45,000 was realized through licensing agreements.
At the same time, Ghana reportedly spent approximately US$3.6 million on broadcasting operations. Additional concerns emerged over delayed procurement approvals, lack of competitive tendering, and the deployment of GBC staff on third-party contracts without revenue-sharing arrangements.
Infrastructure Variations and Construction Defects
The largest financial irregularities identified in the audit related to the Games infrastructure projects. Auditors estimated irregular claims, contract variations, and rescoping adjustments across major facilities at approximately GH¢467.9 million.
The Borteyman Sports Complex contract reportedly experienced substantial financial adjustments through variation orders that resulted in net losses exceeding US$34 million.
At the University of Ghana Stadium, auditors identified avoidable and irregular claims linked to interest payments, prolongation costs, and statutory fees. Similar issues were detected at the Legon Sports Village project where repainting costs and extension related expenses were classified as unjustified.
Physical inspections also uncovered widespread structural defects across several Games facilities including slab cracking, poor compaction, drainage failures, inadequate waterproofing, corrosion, and incomplete works. The estimated cost of rectifying the defects was placed at not less than GH¢12 million.
Procurement Breaches and Contract Concerns
The audit identified extensive procurement irregularities across the organisation of the Games. More than 55 contracts were reportedly single-sourced without adequate justification, supplier qualification evidence, or proper price benchmarking.
Auditors also discovered that multiple high value contracts involving accommodation, transportation, ticketing, sportswear, medals, and equipment were linked to companies associated with the same beneficial owner.
Several contracts were structured as fixed lump sums despite involving variable services such as accommodation, transportation, catering, and air tickets. Auditors stated that the absence of reconciliation controls made it impossible to verify whether payments matched actual service delivery.
The report additionally cited unexplained costs exceeding GH¢55 million due to missing itemized pricing structures and poorly defined contract scopes.
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