Unexplained Wealth Under Scrutiny as Lifestyle Audits Gain Momentum in Ghana

Under the administration of President John Mahama, individuals flaunting unexplained wealth will soon face scrutiny through lifestyle audits as part of the National Anti-Corruption Programme, sources have told Accra Daily News, followed up by Accra Street Journal.

The flaunting of wealth, often by individuals with no clear or sustainable source of income, has become a troubling trend in Ghana. Many emerge rapidly, displaying obscene levels of wealth, raising suspicions of illicit activities like money laundering, fraud, or drug trafficking. Investigations by Accra Street Journal and Accra Daily News reveal that many of these individuals either evade taxes or use their influence to underreport the value of their assets, thereby paying significantly less in taxes.

In other countries, such conspicuous displays of wealth often prompt investigations, sometimes leading to jail sentences for those found guilty of illegal activities. However, in Ghana, this hasn’t been the norm. This is set to change with the introduction of lifestyle audits under President Mahama‘s tenure.

Lifestyle audits—also known as lifestyle checks or monitoring—are an accountability tool used to detect and prevent corruption. These audits are triggered when an individual’s lifestyle or standard of living appears to far exceed their known income. A closer assessment of the person’s income, assets, and investments is then carried out to determine whether their wealth could be linked to illicit gains.

If discrepancies are found between a person’s declared income and their lavish spending habits, it could indicate alternative income from illegal activities such as embezzlement or bribery. Often, these audits include reviewing the financial activities of the individual’s household to detect whether corrupt proceeds are being concealed under the names of family members or associates.

Lifestyle audits are most effective when combined with other anti-corruption measures such as the criminalization of illicit enrichment, regular asset declarations, and Unexplained Wealth Orders (UWOs).

Experts believe that under President Mahama‘s efforts to reset Ghana and combat corruption, lifestyle audits will play a key role in addressing the issue of unexplained wealth and curbing illegal practices.

However, there are concerns that, like previous anti-corruption efforts, there may be a lack of strong political will to pursue this initiative aggressively. This is particularly worrisome, as such audits could implicate politicians and other influential figures.

In Ghana, the Office of the Special Prosecutor (OSP) is supposed to spearhead lifestyle audits. Established to fight corruption and ensure accountability, the OSP has the mandate and expertise to investigate wealth discrepancies. But it is faced with a major hinderance.  The Office has raised concerns over the exclusion of the unexplained wealth order from the OSP Act, citing its hindrance in executing their mandate. According to its Director of Strategy, Research and Communications at the OSP, Samuel Appiah Darko, currently, even if they are doing a lifestyle audit, the onus lies on them “throughout the entire investigation, to show to the court how they committed the corruption”. This impediment makes the President’s plan to start lifestyle audit even more crucial as the presidency remains one of the few to champion this anti-corruption practice.