Prof. Stephen Kwaku Asare, a Democracy and Development Fellow at CDD-Ghana, has emphasized that there is nothing inherently wrong with acquiring state land through legitimate means.
However, he indicated that obtaining it at a price significantly below its market value renders the acquisition unlawful and constitutes a financial loss to the state.
Prof. Asare highlighted that state land is a public asset meant to serve the collective interests of all citizens, noting that selling it below market value not only undermines the principles of equity and transparency but also deprives the state of critical revenue.
This revenue, he stressed, could otherwise be channeled into funding essential public services such as healthcare, education, and infrastructure development, which are crucial for national progress and social welfare.
“Legitimate transactions should reflect the true market value to ensure fair competition. Selling state land at a discounted price creates an imbalance and raises questions about favoritism or corruption.
“State resources are held in trust for the benefit of all citizens. Undervaluing and selling such assets suggest misuse of that trust and undermines confidence in governance”.
Prof. Stephen Kwaku Asare
Asare further highlighted that selling state land below market value typically benefits a privileged few, fostering perceptions of cronyism or corruption.
Such practices, the Democracy and Development Expert maintained, undermine public trust and compromise the integrity of state institutions.
He further noted that Ghana’s Criminal Code explicitly prohibits such transactions, as they willfully cause financial loss to the state, which is considered illegal.
The Code also prohibits acts of fraud and breaches of fiduciary duty, reinforcing the need for transparency and accountability in managing public assets.
Transparency, Fairness Urged in State Land Sales
Furthermore, Prof. Stephen Kwaku Azar Asare emphasized that if the government insists on proceeding with the sale of state lands, despite the recklessness such actions often entail, priority must be given to the original owners.
He argued that this approach would respect the historical and legal claims of the initial custodians of the land.
He further stated that any remaining parcels should then be sold through a well-publicized auction process open to all interested parties.
This method would ensure transparency, fairness, and competitive bidding, allowing the state to maximize revenue while fostering public trust in the management of public assets.
“Selling land below market value disrupts the broader land market, leading to unfair competition and devaluation of nearby properties.
“In summary, while it is acceptable to acquire state land under legitimate processes, undervaluing the asset harms the state and its citizens by depriving them of the fair value of a public resource”.
Prof. Stephen Kwaku Asare
Asare highlighted that the practice of selling state assets to public officials poses significant challenges.
He explained that such transactions create inherent conflicts of interest, where those entrusted with safeguarding public resources may prioritize personal gain over their fiduciary responsibilities.
He further noted that these actions foster perceptions of favoritism or corruption, as the public may view such sales as a deliberate attempt to benefit a select few at the expense of the state.
This undermines public trust in the fairness, accountability, and integrity of government processes, eroding confidence in institutions meant to serve the collective interest.
Accordingly, Prof. Asare emphasized that it is imperative for the ORAL Committee to thoroughly document and compile all transactions involving the sale of state lands, particularly those conducted below market value.
He indicated that this comprehensive collation of data would provide a clear record of questionable dealings and ensure accountability.
He further suggested that the Auditor-General should step in to surcharge the lessees who benefited from such undervalued transactions, ensuring that the financial loss to the state is recovered.
Additionally, he urged the Attorney-General to take decisive legal action by prosecuting both the enablers who facilitated these questionable deals and the beneficiaries who gained from them.
Such steps, he stressed, are necessary to uphold the rule of law, deter future misconduct, and restore public confidence in the management of public assets.
