OSP Investigates GH¢345 Million Ports Disinfection Contract, Orders Ghana Health Service to Account

Introduction

A major corruption investigation has been launched into a controversial GH¢345 million disinfection contract at Ghana’s ports, with the Office of the Special Prosecutor (OSP) directing the Ghana Health Service (GHS) to submit an Integrity Plan by March 31, 2026. The probe centers on allegations that a private company retained millions in public revenues without proper oversight, raising serious concerns about transparency, accountability, and systemic corruption risks in Ghana’s port operations.

Key Points

Background

The controversy stems from a long-standing arrangement between the Ghana Health Service and LCB Worldwide Ghana Limited, a private enterprise granted a national monopoly to provide disinfection services at all ports of entry. Under this agreement, LCB was authorized to charge importers and exporters directly for disinfection services, retain the proceeds in its own accounts, and determine how much to transfer to state agencies.

This arrangement, which has been in place for years, operated with minimal oversight and transparency. The company was not required to submit its financial records for independent verification, and there was no clear mechanism to ensure that the state received its fair share of the revenues generated from these essential public health services.

Analysis

Systemic Corruption Vulnerabilities

The OSP’s corruption risk assessment revealed multiple systemic vulnerabilities in the arrangement:

**Legal Authority Issues**: The legal basis for granting LCB a monopoly on port disinfection services appears questionable, with unclear delegation of public health responsibilities to a private entity.

**Procurement Concerns**: The exclusive arrangement bypassed standard competitive procurement processes, raising questions about fairness and value for money.

**Fee Setting Problems**: LCB had the authority to set and collect fees directly from port users without government oversight or approval.

**Financial Flow Irregularities**: The company retained all revenues in its own accounts and made discretionary transfers to state institutions, creating opportunities for misappropriation.

**Institutional Oversight Gaps**: There was no effective monitoring or auditing of LCB’s operations and financial management.

**Competition Issues**: The monopoly arrangement eliminated competition, potentially leading to inflated prices and reduced service quality.

**Transparency Deficiencies**: Lack of public disclosure about the arrangement, fee structures, and financial flows undermined accountability.

**Public Health Implications**: The commercialization of essential public health services at ports raised concerns about accessibility and effectiveness.

Financial Impact Assessment

The OSP’s investigation revealed the substantial financial impact of the arrangement:

– **GH¢120 million** in avoided costs through the suspension of the arrangement
– **GH¢25 million** in Value Added Tax that was collected from port users but never remitted to the government
– **GH¢200 million** in future losses prevented through the intervention

This totals an estimated **GH¢345 million** in potential savings to the state, highlighting the significant financial implications of the corruption vulnerabilities identified.

Governance Implications

The case exposes fundamental weaknesses in Ghana’s public procurement and contract management systems, particularly regarding:

– Oversight of private sector involvement in public services
– Monitoring of revenue collection and remittance
– Enforcement of tax obligations
– Protection of public interests in commercial arrangements
– Transparency in government contracting

Practical Advice

For Government Agencies

1. **Strengthen Oversight Mechanisms**: Implement robust monitoring systems for all public-private partnerships, especially those involving revenue collection.

2. **Regular Audits**: Conduct periodic forensic audits of contracts involving public funds and services.

3. **Transparency Measures**: Ensure all significant contracts are publicly disclosed, including terms, financial flows, and performance metrics.

4. **Legal Review**: Regularly review the legal basis for exclusive arrangements and monopolies to ensure compliance with procurement laws.

5. **Capacity Building**: Invest in training for procurement and contract management staff to identify and prevent corruption risks.

For Private Contractors

1. **Compliance Programs**: Establish comprehensive compliance programs to ensure adherence to contractual obligations and tax requirements.

2. **Financial Transparency**: Maintain clear, auditable financial records and be prepared for government scrutiny.

3. **Ethical Business Practices**: Avoid arrangements that create conflicts of interest or compromise public trust.

4. **Regular Reporting**: Implement regular, transparent reporting mechanisms to demonstrate compliance and performance.

For Port Users and Importers/Exporters

1. **Request Documentation**: Always request official receipts and documentation for disinfection and other port services.

2. **Report Irregularities**: Report any suspected overcharging or improper fee collection to relevant authorities.

3. **Stay Informed**: Keep abreast of official fee structures and service requirements to identify potential irregularities.

FAQ

Conclusion

The OSP’s investigation into the GH¢345 million ports disinfection contract represents a significant step toward addressing systemic corruption vulnerabilities in Ghana’s public procurement and service delivery systems. By exposing the multiple layers of risk in the arrangement between the Ghana Health Service and LCB Worldwide Ghana Limited, the investigation has highlighted the urgent need for stronger oversight, transparency, and accountability mechanisms in government contracting.

The estimated GH¢345 million in potential savings demonstrates the substantial financial impact of corruption and the importance of proactive anti-corruption measures. As the Ghana Health Service works to submit its Integrity Plan and implement corrective actions, this case serves as a crucial reminder of the ongoing challenges in ensuring that public resources are managed effectively and in the public interest.

Moving forward, the successful resolution of this investigation could set important precedents for how Ghana addresses similar arrangements and strengthens its governance frameworks to prevent corruption in public-private partnerships.

Sources

– Office of the Special Prosecutor (OSP). (2025). Half-Yearly Report: July 2025 to December 31, 2025.
– Life Pulse Daily. (2026, January 30). OSP probes GH¢345m ports disinfection deal, orders Ghana Health Service to account.
– Ghana Revenue Authority. (2025). Tax Oversight and Compliance Reports.
– Ghana Health Service. (2025). Ports Disinfection Program Documentation.

*Note: All figures and details are based on information available in the OSP’s Half-Yearly Report and related public statements as of January 2026.*