GHANA INSTITUTE OF JOURNALISM.

CORRUPTION AND ITS EFFECTS ON GOOD GOVERNANCE IN GHANA

BY

ALEXANDER NKEGBE KPODONU

MADC19076

LONG ESSAY SUBMITTED IN PARTIAL FUFILLMENT OF REQUIREMENTS

FOR AWARD MASTER OF ARTS IN DEVELOPMENT COMMUNICATION

OCTOBER, 2020
 DECLARATION

I confirm that this long essay is my own work, and does not include any work completed by

anyone other than myself, unless referenced. I did it in accordance with guidelines and

directives from the Department of Research of Ghana Institute of Journalism and within the

time limits set by the department. I am willing to make myself available for further

clarification of my work, if the need arises.

………………………………………

……………………………...

Alexander Nkegbe Kpodonu Date

SUPERVISOR‘S DECLARATION

I hereby declare that the preparation and presentation of this project work has been

supervised by me according to the guidelines on supervision of project works as laid down by

the Ghana Institute of Journalism.

…………………………………. ………………………

………………………..

DR. FOSU MODESTUS Date

i
 DEDICATION

I dedicate this long essay to the LORD JESUS CHRIST for His guidance and protection

throughout my stay in school. It is again dedicated to my Mum (BERTHA) for giving me the

roots to grow; and my siblings, Raymond, Bernice, Rebecca who supported me. I cannot do

without mentioning Gifty Mawusi Kabutey who gave me some support when the going was

tough.

ii
 ACKNOWLEDGEMENT

I am particularly grateful to my supervisor, Dr. Modestus Fosu for his immense support

towards the completion of this research work. I have not got words enough to thank you for

your academic leadership, guidance, and particularly your patience which helped immensely

in bringing this work to a successful end. Many thanks also go to all the lecturers, staff and

students of the Department of Communication Studies. Finally, I want to show appreciation

to Davis Opoku Ansah (OPK), Emmanuel Chapman, D.D Atsem, Philip Achem, Sir Latif

Tahiru, Paul Kwao, Mitchris Chapman Kodam, Alpha Saviour, Shabanton Dutsrugbe, and

Richard Asiedu for their immense support and encouragement during my studies.

iii
 ABSTRACT

The importance of a stable, effective and accountable governance system cannot be over

emphasized in the development of any sovereign state. Good governance and national

development are seen as firmly related concepts. Numerous studies have demonstrated that

sound governance bolsters economic development by advancing the proficient utilization of

resources and by making conditions that pull in both local and foreign investments to

enhance economic development. Similarly, good governance adds to sustainable

development possibilities of nations, improved economic sustainability of countries and

institutional amendments that accompany it offers the fundamental premise to improved

governance in people in general and the private sector (Dhaoui, 2019). In the political realm,

Atuobi (2007) suggests that by contravening or even sabotaging formal processes, corruption

undermines democracy and good governance. Be that as it may, the recent issue of

corruption, and particularly how to control it has reappeared as a focal issue in the discussion

on and projects of African and Ghanaian restoration and continued development. The paper

audits how the issue of corruption in the African and Ghanaian body politic, governance and

regulatory frameworks hampers the efficiency of public service, leadership structures and

governance and equally how this issue is being resolved in recent times. Similarly, it attempts

to examine how successful such resolution has taken shape. In conclusion, the paper

investigates what can be done to realize greater effectiveness in the efforts to eradicate or

curb the evils of corruption in Ghana now and in time to come within the context of the

concurrent quest for democracy, accountability and good governance.

iv
 TABLE OF CONTENT

DECLARATION.......................................................................................................................i
DEDICATION......................................................................................................................... ii
ACKNOWLEDGEMENT ..................................................................................................... iii
ABSTRACT .............................................................................................................................iv
TABLE OF CONTENT........................................................................................................... v
CHAPTER ONE ...................................................................................................................... 1
INTRODUCTION.................................................................................................................... 1
1.1 Background................................................................................................................... 1
1.2 Problem Statement ....................................................................................................... 3
1.3 Research Questions ...................................................................................................... 3
1.6 Significance of the Study ............................................................................................. 4
CHAPTER TWO ..................................................................................................................... 5
LITERATURE REVIEW ....................................................................................................... 5
2.1 Introduction .................................................................................................................. 5
2.2 Brief History on Corruption ....................................................................................... 5
2.3 Definition of Corruption .............................................................................................. 7
2.5 Instances of Corruption in Ghana .............................................................................. 9
2.5.1 Mahama Ford Saga ...................................................................................................... 9
2.5.2 Mahama Vote Buying Scandal.................................................................................. 10
2.5.3 Youth Employment Agency Payroll Scandal .......................................................... 10
2.5.4 Election Commissioners Fraud Case ........................................................................ 10
2.5.5 Anas Expose on Judges .............................................................................................. 11
2.5.6 GFA/Kwesi Nyantakyi Corruption Scandal ............................................................ 11
2.6 Influence of Corruption on Governance .................................................................. 12
2.6.1 Cost of Corruption ..................................................................................................... 12
2.6.2 Effect of Corruption on Inequality ........................................................................... 13
2.6.3 Effect of Corruption on Public Services................................................................... 13
2.6.4 Effect of Corruption on Trade and Foreign Investment ........................................ 14
2.6.5 Effect of Corruption on the Environment ............................................................... 15
CHAPTER THREE ............................................................................................................... 16
METHODOLY....................................................................................................................... 16
3.1 Introduction ................................................................................................................ 16
3.2 Research Methods ...................................................................................................... 16
CHAPTER FOUR .................................................................................................................. 17

v
ANALYSIS AND CONCLUSION ....................................................................................... 17
4.0 Introduction ................................................................................................................ 17
4.1 Management of Corruption in Ghana ..................................................................... 17
REFERENCES ....................................................................................................................... 21

vi
 CHAPTER ONE

INTRODUCTION

1.1 Background

Governance and corruption are two interdependent concepts, mutually ensconced in one

another. The general assumption in political science is that corruption is one of the various

indicators of the level of governance in any state and this includes Ghana (Mitra, 2009).

Ghana is a West African country along the Gulf of Guinea and the Atlantic Ocean spanning

a land mass of 238,535 km2 (92,099 sq mi). The country Ghana is bordered by the Ivory

Coast in the west, Burkina Faso in the north, Togo in the east, and the Gulf of Guinea and

Atlantic Ocean in the south. Ghana is considered as one of the more stable countries in West

Africa since its transition to multi-party democracy in 1992. Ghana became the first sub-

Saharan country in colonial Africa to gain its independence and became a republic in 1957.

Ghana's post-colonial life has witnessed the consolidation of the country‘s economy, and, in

the past two decades, it has taken major strides toward democracy under a multi-party system

(Oxford Business Group 2017; World Bank 2018).

In the words of Kaunain (2018), corruption exists in all branches of the Ghanaian

government, and there is often a lack of accountability. The culprits often enjoy impunity and

the judiciary and police are viewed or perceived as the most corrupt institutions (Kaunain,

2018). This situation has resulted in corruption having a dire consequence on the Ghanaian

society. The overwhelming effect of this, has led to increased interest in the quest to find

lasting remedies to this cankerous phenomenon through research and numerous social

debates. Likewise, these are usually accompanied by an extreme absence of government

pellucidity and accountability of the public service which has developed into major global

issues, especially with developing countries such as Ghana. The Commonwealth Expert

1
Group (2000) established through their work the corrosive nature of poor governance and

corruption on economic and social development of countries. One requirement for national

development is good governance hence corruption can be seen as a symptom of poor

governance as it undermines economic and general national development.

Furthermore, the last decade has seen an upsurge of the subject of corruption and good

governance as it has taken a center stage in global development discourse shaking the

foundations of nations and affecting every sector (Olufemi 2012). It is therefore necessary for

the citizenry, governments, social groups and other stakeholders to be actively involved in

demanding accountability from individuals holding public offices so as to curb the evil of

corruption.

The purpose of this paper is to assess the canker of corruption and its effects on the various

sectors of society in terms of finance, agriculture, security, health, and education. It will

equally analyze the constituents of good governance and how these can be improved upon as

a measure to mitigate the adverse effect of corruption. This study is conducted to find

answers to the questions asked thereby contributing to literature on the relationship between

corruption and good governance in any developing state.

2
1.2 Problem Statement

Corruption in the country has been a common practice since independence in 1957. Since

2006, Ghana's score and ranking on the Transparency International Corruption Perceptions

Index has improved only slightly. Specifically, Ghana scored 41 points out of 100 on the

2019 Corruption Perceptions Index reported by Transparency International. There is a

growing perception in Ghana that government-related corruption is on the rise, ranked 64th in

2012, tied with Lesotho. Even though corruption in Ghana is relatively low when compared

to other countries in Africa, businesses frequently quote corruption as an obstacle for doing

business in the country (Ghana Corruption Report, 2016). Corruption occurs often in locally

funded contracts: companies are subject to bribes when operating in rural areas (LeVine,

1975). The Ghana Police Service that is deemed to enforce the law is perceived to be the

most corrupt institution in the country (Business Anti-Corruption Portal, 2015). Even the

Judiciary is not left out in Ghana from the fallout of Anas Expose‘.

1.3 Research Questions

Based on the insights above, the research questions that are worth asking and answers

proffered to are:

1. What are the negative effects of corruption on good governance?

2. How do we manage or curb corruption in Ghana?

3. What are some of the major instances of corruption in Ghana?

1.4 Justification of the Study

Corruption has a debilitating effect on all aspects of the Ghanaian economy. A study by

IMANI Ghana (a think tank based in the country) found that Ghana loses more than US $3

billion a year to corruption each year. Kaunaian (2018) affirms that corruption exists in all

branches of the Ghanaian government, and there is often a lack of accountability in cases of

3
violence against women and children, and this increases the potential to increased activities

that promotes personal gain at the expense of general public good. Even though Ghana ranks

81 out of 180 countries in Transparency International‘s 2017 Corruption Perceptions Index

(CPI), the negative effect of corruption is evident and the perception is equally high

(Transparency International 2018).

If corruption persist in the country, this will mean that resources that will otherwise have

gone into the development of other sectors of the economy will go into individual hands at

the expense of the entire country.

1.6 Significance of the Study

Corruption is a corrosive force that hits the poor and the vulnerable the hardest, and its effects

are very real. Corruption stops medicine and drugs from reaching the sick, stops schools from

being built, leads to roads washing away in the rain, and empties the public coffers. Most

importantly, corruption breaks the trust between the citizens and the state that is critical for

development to work. This study makes readily available information on the effects of

corruption on the Ghanaian economy so that actors can be aware. The study will also add to

existing knowledge and literature on corruption in Ghana; it will aid anti-corruption agencies

propose possible solutions that could reduce corruption in the country.

4
 CHAPTER TWO

LITERATURE REVIEW
2.1 Introduction

This chapter reviews relevant literature that has direct relation to corruption in general and its

effect on good governance in Ghana. Specifically, the study reviewed literature on the

following areas: history on corruption, definition of corruption, the concept of good

governance, instances of corruption cases in Ghana, effect of corruption on good governance

viz-a-viz its effect on the various sectors of the Ghanaian economy. Furthermore, literature

was reviewed on the strategies and theoretical framework that could be adopted to curb or

stop the practices of corruption in Ghana. The theoretical review guided the framework of the

study and aided in the clarity of the study perspective. A conceptual framework is also

presented based on the study‘s objectives to explain the relationship between dependent and

independent variables being considered in the study.

2.2 Brief History on Corruption

The notion of corruption has a long undeniable existence in human history. It dates back to

circa 300 BC when a minister in ancient India wrote to his king to protect trade routes within

the province from harassment by courtiers, thieves, government officials and frontier guards

(Kaufman, 1997). Corruption is currently a household name in every society and the negative

impact it has on the socio-economic and political setting of a country can hardly be over

emphasized (Olufemi, 2012).

Brioschi, et. al. (2017), the politician‘s craft (corruption) is commonly listed, along with

prostitution, as one of the world‘s oldest professions. This longevity is no doubt largely

attributable to the darker aspect of the political trade, that is, the realm of corruption, whose

history is as long and twisted as that of mankind‘s attempt to live by the rule of law.

Variously tolerated or fought, depending on time and place, the very definition of corruption

5
has shifted frequently, as practitioners of corruption have encountered the ideas, laws, and

customs of different peoples.

According to Brioschi, et al., (2017), a new Olympiad began in Athens in 324 B.C., and that

same year the scandal of Harpalus‘s gold erupted. Demosthenes, renowned for his orations

against Philip II of Macedon, was accused of having taken possession of the sums deposited

on the Acropolis by Alexander‘s treasurer. Demosthenes was convicted and had to flee. This

is certainly one of the best-known scandals of ancient Greece.

The acronym r.o.m.a.—standing forradix omnium malorum avaritia, ―Greed is the root of all

evil‖—probably dates from the fourth century A.D., but in the political life of ancient Rome,

corruption had already taken on quite a considerable scale before then. Yet the structures of

the Roman state stood solid for many centuries before being gravely undermined.

Notoriously, the great Julius Caesar (100–44 B.C.) made use of all and any means—not

merely violence but also financial means—to attain the consulate, dismiss the corrupt Senate,

and become the founder of a new Rome (Brioschi, C., et. al. (2017).

According to John Noonan, the author of Bribes, the Genuine Era of Corruption, understood

as reciprocity and the exchange of favors in order to carry on relations with one‘s neighbors

or the powerful, ended with the spread of Christian morality and, in particular, with the

centuries that came on the heels of the end of the Roman empire: the ―age of the barbarians‖

and the Early Middle Ages (fifth to tenth century). And yet the mechanism of reciprocity

continued to serve as a glue for social relations later as well (Brioschi, C., et. al. (2017).

Just as there exist in every society, behaviors which are detested in the course of relational

interactions or group dynamism by virtue of their legal, ethical or moral implications, what

6
encapsulates all these loathed attitudes as they are inimical to behavioral ideals is corruption

Omoluabi (2007).

2.3 Definition of Corruption

According to the U4 Anti-Corruption Resource Center of the CHR Michelsen Institute,

corruption cuts across the public and private sectors or institutions in the country from the

highest levels to the lowest stages. Corruption in any nation starts from the top, as high as in

the presidential political parties known as grand and political corruption, down to the lowest

levels in government institutions referred to as petty or bureaucratic corruption (Byrne,

2009). These forms of corruption are fraud, bribery, extortion, embezzlement and nepotism.

A clear example of corruption starting at the highest level of an institution was during the

Nkrumah regime of Republic of Ghana.

According to Rose-Ackeman (2005), there is an identifiable difficulty in establishing clear-

cut boundaries between what is legal and illegal, and between merit and kickback. Over the

years, many individuals and social groups have attempted to provide an encompassing

definition of the concept of corruption. Philip (1997) reiterates this when he suggested that

corruption as a concept is one of the most contested in the history of political thought and is

still is even in recent times.

Begovic, (2005) defines corruption as the intentional non-compliance with the arm‘s-length

principle aimed at deriving some advantage for oneself or for related individuals from this

behavior. Onuoha (2005) equally depicts corruption as an illegal demonstration, which

includes incitement as well as unnecessary impact of individuals either in the open setting or

7
the private circle to act in opposition to the surviving rules and guidelines which typically

direct a specific procedure. Transparency International on the other hand defines corruption

as ―the abuse of entrusted power for private gain‖ (Kolstad et al., 2008). It can be said to refer

to the misuse of resources or power for private gain. Otite (2000) further indicates that

corruption rises above bribery however incorporates treasury looting and furthermore the

conscious twisting of rules of the framework to support companions or hurt adversaries. It

can likewise be depicted as the cognizant endeavor or conscious diversion of resources from

the fulfillment of the general benefit to that of self (individual) interest (Mitra, 2009).

2.4 The Concept of Good Governance

Governance has been characterized as the utilization of political position and exercise of

authority over society and the administration of its resources for social and financial turn of

events. It envelops the idea of working of a state's institutional and basic courses of action,

dynamic procedures, strategy plan, usage limit, data streams, viability of initiative and the

idea of the connection among rulers and the controlled (Doig, 1995).

Ogundiya (2010) suggests that when resources must be circulated to elevate disparity or to

accomplish individual or group objectives, the substance of governance which matches with

the quintessence of governmental issues and pith of the state is vanquished. Along these

lines, resources must be conveyed capably, impartially and reasonably for the

acknowledgment of the pith of the state.

The UNDP defined good governance as the exercise of economic, political and

administrative authority in the management of a country‘s affairs at all levels. It is a crucial

right in a vote-based system and it suggests straightforwardness and responsibility. Good

governance involves an organization that is delicate and receptive to the necessities of the

8
individuals and is compelling in adapting to rising difficulties in the public eye by

surrounding and actualizing proper laws and measures. Good governance guarantees that

political, social and monetary needs depend on wide agreement in the public arena and that

the voices of the least fortunate and the most defenseless are heard in dynamic over the

designation of advancement resources (Richardson, 2008).

According to Keping (2018), good governance refers to a set of institutions and actors that

are drawn from but also beyond the government. Corruption challenges the authority of the

State or the government in the traditional sense and maintains that the government is not the

only power center of a state. As long as the power exercised by a public or private institution

is recognized by the public, it is possible to become a power center at a specific level.

According to Ogundiya, (2010), the genuine test of good governance is how much it conveys

on the guarantee of human, social, financial, political and social rights. It guarantees that

corruption is limited, the perspectives on minorities are considered and that the voices of the

most helpless in the public eye are heard. It is likewise receptive to the present and future

needs of society and the country on the whole. Governance is good when it can accomplish

the ideal goal of the state characterized as far as equity, value, assurance of life and property,

upgraded residents' cooperation, conservation of rule of law and improved expectation for

everyday comforts of the people. According to Leftwich (2007), aside the existence of

competitive economies, promotion of open markets and support for democratization and

improvement of human rights, good governance is one main requirement for contemporary

western aid to any country in the world.

2.5 Instances of Corruption in Ghana

2.5.1 Mahama Ford Saga

9
The previous Mahama-government faced a number of high-ranking and highly publicized

cases of corruption in office, which shaped its public image and contributed to its downfall

(Bertelsmann Stiftung 2018). During the campaign of 2016, a widely shared video showed

Mahama allegedly ―buying votes‖ by handing out money to women at a market (Cheeseman,

Lynch and Willis 2016).

2.5.2 Mahama Vote Buying Scandal

A report by the CHRAJ cleared President Mahama from allegations of bribery after then

President Mahama received a car from a construction firm from Burkina Faso bidding on a

lucrative government contract in Ghana. The firm later secured the road-building contract.

The President Mahama denied the corruption allegations, claiming that the vehicle was a gift

and that it was added to the government car pool. Although the CHRAJ cleared the President

Mahama of bribery, it found him guilty of breaching government rules (Business Day 2016;

GAN Integrity 2018).

2.5.3 Youth Employment Agency Payroll Scandal

In 2017, the Youth Employment Agency announced that an internal audit discovered payroll

fraud of approximately GHC 50 million (US$11.1 million). However, by the end of the year,

there was no indication of the government holding anyone accountable for the fraud

(Kaunain, 2018).

2.5.4 Election Commissioners Fraud Case

Also, in 2017, the Election Commission (EC) was entangled in a corruption scandal, as senior

members of the commission accused each other of fraud and mismanagement, including the

unlawful awarding of contracts, misappropriation of funds and political bias (Freedom House

10
2018; Koswe 2018). After the launch of a probe by Economic and Organized Crime Office

investigating allegations that senior EC officials had misappropriated funds in 2012 and

2013, Osei, the EC chairperson, and two of her deputies were removed by the President in

2018 for corruption and incompetence (Koswe 2018).

2.5.5 Anas Expose on Judges

Anas conducted a two-year undercover investigation of the judiciary in Ghana and brought

out audio and video evidence of alleged corruption taking place. Following the exposé,

22 circuit court judges and magistrates were suspended and 12 High Court judges were also

under investigations. The investigations resulted in the sacking of twenty magistrates and

judges who were found guilty of bribery (BBC, 2015).

2.5.6 GFA/Kwesi Nyantakyi Corruption Scandal

An investigative piece by Anas Aremeyaw Anas revealed widespread corruption in football

in Ghana. Several match referees were caught receiving bribes in order to favour certain

teams. In many instances, match officials and football administrators engaged in match-fixing

deals and influenced who was called to feature for the national team or who got to play in a

particular match. In all, 77 Ghanaian referees and 14 Ghana Football Association officials

were caught in various acts of corruption. The documentary also showed three individuals

who rejected the bribes that were offered. The Anas‘ ‗Number 12‘ exposé brought serious

consequences to the persons captured perpetrating untoward acts, especially Kwesi

Nyantakyi. FIFA banned him from all football related activities for life. In addition, he was

also been fined an amount of about GHS 2.4million by FIFA.

11
2.6 Influence of Corruption on Governance

Countries in Africa can be said to be typical examples of cases in the world where economic

development has been impeded by the threat of corruption. There have been cases of

misappropriation of public funds for private use, public officials demanding bribes before

performing their functions or taking favorable decisions, public officials are appointed not on

merit but party affiliation and personal relationships, inflation of cast even when

developmental projects are being undertaken, etc. According to Thomson (2000), in many

cases, individuals who now make use of public services have internalize this such that they

recognize only a minute difference between bribes, gifts and official fees. Corruption is

sometimes voluntarily committed and other times imposed on people when it has been

normalized in the society in which one resides (Aisha, 2017). The effect of corruption on the

state, the citizenry and institutions within the state are grave and marred development of any

democratic state.

2.6.1 Cost of Corruption

Corruption is deemed as costly to the state in diverse ways. Many scholars have encountered

the difficulty in defining a major assessment tool in the determining the effect of actual and

perceived corruption on the resources of the state. Despite the above, it has been established

that through corruption, services which should be free of charge to the citizenry tend to have

a price tag creating uncertainty and reducing business investment which is harmful to the

state (Department for international Development, 2015). According to a report on published

on myjoyonline by Ablorh in 2015, financial irregularities and embezzlements by public

officials as disclosed by the Auditor - General‘s reports in Ghana are estimated to be about 8

percent of GDP. Gyimah-Brempong, et al, (2006) additionally reiterated that a unit increase

in corruption reflects a 0.75 percentage decrease in economic growth hence it being

12
detrimental to any state. Stevenson (2005) also reiterated that; corruption is costly to the state

as so citizenry voluntarily indulge in the act other than other economic activity based on its

apparent profitability deepening its negative effect on economic growth.

2.6.2 Effect of Corruption on Inequality

The 1998 IMF working paper suggests that corruption affects the poor by increasing income

inequality hence taunting economic growth. It is revealed that the low-income population and

businesses, pay high levels of their income to corrupt officials in the form of bribes and

extortions than any other social class becoming more of a regressive tax on the poor

(Bhargava et. Al. 2004). The poor are seen as weak and vulnerable and even in some cases

ignorant hence officials in governing institutions exploit this lower social class, examples

being some police official‘s extortion activities on our roads, local assemblies‘ corrupt

activities in the form of unwarranted levies and charges on the lower income earners such as

petty traders, etc (Kaunain, 2018). Transparency International (2009) revealed in one of its

publications in a survey that, the percentage of people in the lower income quintile paying

bribes for services far surpasses that of those who belong in the higher quintile paying bribes.

In the words of Gyimah-Brempong (2002), ―the combined effects of decreased income

growth and increased inequality indicates that corruption affects the poor the most in African

countries. This effect of corruption impedes good governance which is to ensure fairness and

equity within the state.

2.6.3 Effect of Corruption on Public Services

It can be identified that the existence of corruption creates a negative perception which deters

people from honoring their tax obligation leading to reduce revenue which in turn mars the

effective delivery of public services. The populace by temperance of the apparent corruption

13
in the nation, lose trust in public administrations and public systems henceforth withdrawing

patronage of these services (Kaufman et al, 2005). Anderson et al. (2003) suggests that

whereas some believe corruption decreases the level of confidence and trust in public

institutions, other researchers also argue the reverse that a decreased trust in public

institutions increases corruption activities within the country. Decrease in trust of public

institutions results in decreased respect of the legitimacy of the powers of these institutions

and hence an increase in the use of violence and crime to achieve one‘s end. The citizenry

thus, takes the law into their own hands because they believe the police is corrupt, the judicial

system is impartial and all other public service officials are only there to enrich themselves

leading to increased crime within crime. The adverse effect of this is a reduction in revenue

from these institutions leading to a reduction of investment in these institutions. Uslaner

(2007) suggested that, countries that demonstrate a higher level of citizenry trust in state

institutions are more capable to control corruption.

2.6.4 Effect of Corruption on Trade and Foreign Investment

Before any investor decides to place funds in any sector, proper cost benefit analysis is

undertaken to assess the possible returns on investment. The investor will assess the long-

term profitability juxtaposed the cost of corruption within the state or country in which they

wish to invest. Most often than not, these foreign investors are deterred by the mere

perception of corruption hence reduced investment. According to Alemu (2012), an increase

of a unit in corruption perception leads to a reduction if Foreign Direct Investments (FDI) by

9 to 14 percentage points. Additionally, Al-Sadig (2009), the decision for FDI location is

dependent on factors such as quality infrastructure and local investment in public services,

healthcare, and income inequality and the absence of these will decrease the likelihood of

foreign investors decision in placing substantial funds in businesses within such countries.

14
This is because they perceive through their cost-benefit analysis a higher cost of investment

where bribes have to be paid in order to acquire licenses and other governmental permits to

conduct business. The adverse effect of this in a decrease in profitability as these funds are

mostly undefined and undetermined hence deterring investment. The fear of latter

prosecution as in the case of the Airbus bribery case by other authorities equally deter

investors from engagement in perceived corrupt countries.

2.6.5 Effect of Corruption on the Environment

Studies have revealed the negative effect of corruption on pollution and environmental

degradation in the form of increasing rates of deforestation, high toxic emissions, depletion of

natural resources, etc. (Cole, 2007). This effect on environment comes about as a result of the

adverse effect on governance. Corruption weakens the governing systems as people fail to

recognize and trust the institutions involved, weakening compliance on protection laws. As in

the case of Ghana, the increased levels of galamsey and deforestation is as a result of

corruption within state agencies. The equipment used in these activities find their ways

through border officials and numerous road checkpoints into the forest and waterbodies

where there are used. Even the perception of the involvement of some government officials

and political actors in the act encourage others to do same and engage in such land

degradable activities knowing very well its consequence to the greater population. Cavanagh

(2012) supports the above with a case study analysis in Lesotho, Mexico, Cambodia, Russia

and Uganda.

15
 CHAPTER THREE

METHODOLY

3.1 Introduction

This chapter involves the methods used in carrying out the research. It describes the means of

informational gathering including analytical tools employed to address the objectives of the

study. Method of data collection, and estimation procedures for the parameters in the study

are also presented.

3.2 Research Methods

The study employed mainly desktop research to gather already existing literature on

corruption; hereafter, this literature was reviewed, and summarized in order to find answers

to all the research questions of the study. The secondary data employed this study include

research materials published in research reports.

16
 CHAPTER FOUR

ANALYSIS AND CONCLUSION

4.0 Introduction

This chapter presents a conclusion of the study based on its findings from literature on the

effects of corruption on good governance in Ghana. From the foregoing, the following

conclusions are reached from the study.

4.1 Management of Corruption in Ghana

Matters of corruption is a very sensitive and therefore complex in Ghana; as a result, there is

no single strategy that one can proffer to tackle this menace.

Mbaku (2000) In: Pabia (20130 chronicles four types of strategies which he termed as

traditional approaches to dealing with corruption. These approaches are the societal

approaches, legal approach, market strategies and political approach. The societal approach is

the strategy which searches for a common standard of morality which can be used to

determine if behavior is corrupt. This is very much dependent on what the society view as

corruption. On the other hand, Legal strategies for corruption control are supposed to work

through the activities of the courts, police, media and members of society. Market strategies

for corruption control are based on the argument that there is a relationship between market

structure and the incidence of corruption. Government intervention in the marketplace creates

opportunities for individuals to engage in corruption. Political strategies for controlling

corruption emphasize governmental decentralization. The argument is that corruption arises

from the concentration of political power at the centre and in the hands of a few individuals.

Thus, a process which improves citizen access to the political process will significantly

reduce levels of corruption in the country.

17
Gyimah-Boadi, (2002) opines that remedying the problem of corruption begins from an

awareness of prevalence, recognition that corruption is a serious problem, and a commitment

to tackle corruption. Confronting corruption in a sustained manner would require

comprehensive and integrative approaches that combine preventive, public education and

punitive elements. He outlined several ways by which corruption can be controlled in the

Ghanaian society.

Firstly, offenders must be frequently exposed and severely punished. To do so would require

the strengthening of law enforcement mechanisms, which in turn requires strengthening the

independence and credibility of the judiciary. It requires insulating judicial and quasi-judicial

bodies and processes from the executive. For this reason, serious consideration must be given

to the idea of separating the Attorney-General‘s position from the politically partisan position

of Minister of Justice, or at least insulating the prosecutorial function from political

manipulation, so that decisions to prosecute cases of corruption involving members of

government are not subjected to a strict partisan political test.

Secondly, reform of administrative procedures and policies and elaboration of administrative

law must feature prominently in efforts to control corruption. Comprehensive anti-corruption

legislation - encompassing a ―reasonably comprehensive and unambiguous definition of

bribery and corruption,‖ credible access to information and whistle-blower encouragement

and protection laws, and clear guidelines on conflict of interest is also crucial.

Furthermore, the independence and capacity of constitutional and statutory oversight bodies

should be significantly enhanced. In most cases, this would require enhancing the

18
constitutional, operational, and financial independence of anti-corruption commissions, and

insulating them from the very institutions and officials they are set up to oversee. For a start,

the practice in Ghana whereby ministers, judges, and MPs serve on the boards of state-

owned-enterprises, including enterprises they are supposed to oversee, must cease. It would

also require that we place legal and constitutional limits on how long leaders of oversight

agencies such as the Serious Fraud Office and the Audit Service could serve in those

positions in an ―acting‖ capacity and without confirmation. Insecurity of tenure surely

undermines self-confidence and independence.

It is also important to establish equitable party financing arrangements in order to strengthen

multi-party competition, enhance the prospects of vibrant opposition parties, and reduce the

rampant corruption associated with multi-party elections. It is equally important to enforce

party finance regulations and penalize parties that flout such regulations. In the case of

Ghana, this would require a more effective and consequential auditing of political party

accounts by the Electoral Commission (EC). In short, the auditing of political parties by the

EC must lead to sanctions where violations are detected.

4.2 Conclusion

Evidently as expressed above, the adverse effect of corruption in Africa specifically Ghana

cannot be undermined. It limits the countries tapping of good governance benefits as it

creates a state of inequality, underdevelopment, and reduces revenue generated internally to

undertake government projects. It costs the country a substantial revenue which could have

been used for developmental projects to enhance the living standards of its citizenry making

the country less attractive to foreign investment as infrastructural development is usually low.

Ghana was seen as the second most corrupt country in Africa as a result of numerous

19
accusations among political actors and increased attention from media, politicians,

stakeholders and civil society organizations (Starrfmonline ,2015). Knowing the negativity of

the concept of corruption, the country through successive governments, in a bit to tackle the

menace and mitigate its adverse effect on governance, through policy initiatives such as the

National Anti-Corruption Action Plan (NACAP), establishment of CHRAJ, established an

office for a Special Prosecutor, passing of the RTI bill, establishment of EOCO, empowering

of the Auditor-General, Public Account Commission hearings, etc. Despite these

interventions, the country still faces daily scandals on corruption and its effects still being

experienced.

20
 REFERENCES

Ablorh,, R.. (2015). Corruption and Ghana’s Development. Myjoyonline.com. Available at:

https://www.myjoyonline.com/opinion/2015/July - 24th/corruption-and-ghana-

development .php

Alemu, A. M. (2012). Effects of Corruption on FDI Inflow in Asian Economies. Seoul

Journal of Economics 25(4): 387 - 412.

Anderson, C.J & Tverdova, Y. V. (2003). Corruption, Political Allegiances, and Attitudes

Toward Government in Contemporary Democracies. American Journal of Political

Science 47(1): 91 – 109.

Al-Sadig, Ali (2009). The Effects of Corruption on FDI Inflows. Cato Journal, Vol 29, No.

2. Cato Institute.

Atuobi, S. M. (2007). Corruption and State Instability in West Africa: An Examination of

Policy Options. KAIPTC.

Bhargava, V. & Bolongaita, E. (2004). Challenging Corruption in Asia: Case Studies and a

Framework for Action. Washington, DC: World Bank. 2004.

Brioschi, C., & Shugaar, A. (2017). Introduction: If Julius Caesar Is A Thief. In Corruption:

A Short History (pp. 1-20). Washington, D.C.: Brookings Institution Press. Retrieved

September 26, 2020, from http://www.jstor.org/stable/10.7864/j.ctt1hfr1sk.3

Brioschi, C., & Shugaar, A. (2017). DEMOCRACY AND DECADENCE. In Corruption: A

Short History (pp. 29-38). Washington, D.C.: Brookings Institution Press. Retrieved

September 27, 2020, from http://www.jstor.org/stable/10.7864/j.ctt1hfr1sk.5

21
Brioschi, C., & Shugaar, A. (2017). THE FECES OF THE DEVIL. In Corruption: A Short

History (pp. 51-64). Washington, D.C.: Brookings Institution Press. Retrieved

September 27, 2020, from http://www.jstor.org/stable/10.7864/j.ctt1hfr1sk.7

Cavanagh, C. (2012). Unready for REDD+? Lessons from Corruption in Ugandan

Conservation Areas. Bergen: CMI.

Cole, M A. (2007). Corruption, Income, and the Environment: An Empirical Analysis.

Ecological Economics 62: 637 - 647.

DFID (Department for International Development). (2014). How to Note: Assessing the

Strength of Evidence. London: DFID.

Dhaoui, Iyad, 2019. "Good Governance for Sustainable Development," MPRA Paper 92544,

University Library of Munich, Germany.

Elaine Byrne. (2009, July 31). Definitions and Types of Corruption. Retrieved April 16,

2017, from ELAINE BYRNE: http://elaine.ie/2009/07/31/definitions-and-typesof-

corruption/

Fatile, J. (2012). Corruption and the Challenges of Good Governance in the Nigerian Public

Sector. Africa‘s Public Service Delivery and Performance Review. 1. 46. 10.4102/

apsdpr. v1i3.35.

Fatile, J.O and Adejuwon, K.D 2012. Democracy and Development under the Shadow of

Corruption in Africa: The Nigeria‘s Fourth Republic in Perspective. International

Journal of Physical and Social Sciences. 2(4):152-176.

Gyimah-Boadi, E. (2002). Confronting Corruption in Ghana and Africa. Briefing Paper, 4, 2,

Accra: Ghana, Center for Democratic Development, May 2002.

22
Gyimah-Brempong, K. (2002). Corruption, Economic Growth, and Income Inequality in

Africa. Economic of Governance 3: 189 - 209.

Gyimah-Brempong, K. & Munoz de Camacho, S. (2006). Corruption, Growth, and Income

Distribution: Are there Regional Differences? Economics of Governance (7): 245 -

269.

Kaufmann, Daniel. (2005). Myths and Realities of Governance and Corruption. Global

Competitiveness report 2005-06. 10.2139/ssrn.829244.

Keping, Y. Governance and Good Governance: A New Framework for Political

Analysis. Fudan J. Hum. Soc. Sci. 11, 1–8 (2018). https://doi.org/10.1007/s40647-

017-0197-4.

Mbaku, J.M. (2000). Controlling Corruption in Africa: A Public Choice Perspective in

Kempe Hope and Chikulo Bornwell (eds) Corruption and Development in Africa:

Lessons from Country Case studies. Macmillan Press Ltd: London

Mohammed, A. A. (2017). Petty Corruption in the Ghanaian Police Sector, Ashesi University

College.

Omoluabi, P. 2007. The Psychological Concomitants of Corruption in Nigeria. in Olurode, L

and Anifowose, R. (eds). Rich but Poor: Corruption and Good Governance in

Nigeria. Lagos; Faculty of Social Sciences, University of Lagos

Rose-Ackerman, Susan. (2004). The Challenge of Poor Governance and Corruption. Revista

Directory.

Shah, Anwar and Schucter, Mark (2006), Combating Corruption: Look Before You Leap,

World Bank, Washington DC.

23
Starrfmonline. (2015). Ghana is second most corrupt African country– Report. Retrieved

from https://www.ghanaweb.com/ GhanaHomePage/NewsArchive/Ghana-is-second-

most-corrupt- African-country-Report-397756

Svensson, J. (2005). Eight Questions About Corruption. Journal of Economic Perspectives 19

(3): 19 - 42.

Transparency International. (2009). Global Corruption Barometer. Transparency

International.

Uslaner, E. (2007). Corruption and the Inequality Trap in Africa. Afrobarometer Working

Paper No. 69.

24