Former Minister of Trade and Industry, K.T. Hammond, has escalated his response to allegations of financial impropriety involving the alleged misuse of GH¢89 million under the One-District One-Factory (1D1F) initiative, including claims of fictitious transactions and so-called “chop chop” fraud.
Mr Hammond has warned that he will take legal action against the Minister for Finance, Dr. Cassiel Ato Forson, the Auditor-General, Johnson Akuamoah Asiedu, as well as an unnamed accounting firm and four banks allegedly linked to the matter.
A special audit commissioned by the Ministry of Finance and the report presented to Parliament allegedly uncovered significant financial irregularities, highlighting systemic vulnerabilities in the programme during the administration of Nana Akufo-Addo. The findings have raised renewed concerns about accountability and transparency in the use of public funds.
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Speaking on Asempa FM, Mr Hammond issued a strong warning: “Tell the Finance Minister, the Auditor-General, the accounting company and the four banks involved to be ready. I will meet them in court.”
The former Adansi Asokwa Member of Parliament insisted the allegations against him are false and damaging to his reputation, arguing that the special audit reportedly implicating him is unconstitutional. According to him, only the President, John Dramani Mahama, has the authority to direct the Auditor-General to conduct a special audit—not the Finance Minister.
Mr Hammond also criticised the audit process, stating that individuals named in such reports must be contacted and given the opportunity to respond before any conclusions are made public.
“If after the audit you uncover discrepancies, it is important to contact those whose names have come up for their reaction and explanation,” he said.
He revealed that the allegations have already had real-world consequences, including rumours of his arrest.
“Recently, people called me saying they heard I had been arrested for allegedly embezzling GH¢89 million. This is unacceptable,” he stated.
The former minister also referenced past accusations against him, including claims that he sold a ship—an allegation he insists was inaccurate and related instead to actions taken by the Energy Ministry and the state.
Mr Hammond explained that the 1D1F policy encouraged investors to establish businesses across districts, supported by loans from about 15 designated banks at interest rates of roughly 20 percent.
He said the government absorbed 10 percent of the interest burden, leaving beneficiary companies to pay the remaining 10 percent.
According to him, the financial approval and disbursement process begins with ministries compiling interest obligations and submitting them to Parliament for approval. Once approved, the Ministry of Finance processes and releases the funds, which are then channelled through the Controller and Accountant-General to the respective ministry accounts, after which the ministries transfer the funds to the beneficiary companies.
K.T. Hammond argued that this structure makes it impossible for a minister to unilaterally engage in financial misconduct.
“If the Finance Ministry does not release funds, no ministry involved in 1D1F can access them. So nothing fictitious can be done by any minister or individual,” he stressed.
Mr Hammond questioned why he appears to be the only person named, despite multiple technocrats and officials being involved in the programme.
“Some of those technocrats who worked on 1D1F are still at the Ministry, but it is only K.T. Hammond whose name has been mentioned,” he said.
He also insisted that he was never contacted for his side of the story before the allegations surfaced.
The former minister is demanding a full retraction of the audit findings from Parliament, as well as a public apology to restore his reputation.
“The maligning of my name—they owe me an apology. This matter has to be retracted from Parliament and the necessary corrections made,” he said.
While maintaining his innocence, K.T. Hammond acknowledged that accountability must apply where wrongdoing is proven.
“If the probe reveals misappropriation, those responsible, including myself, should be held accountable. If it is chief directors, budget officers or other officials, they too must be held responsible.”
He warned that both the Finance Minister and the Auditor-General should be prepared to face him in court over the report implicating him in wrongful transactions.
“They don’t know who they are joking with. Do they know what a fictitious contract or transaction is?” he questioned.