Former Deputy Trade Minister Michael Okeyere Baafi has dismissed claims that an audit uncovered a fictitious GH¢89.4 million debt linked to the One District One Factory (1D1F) initiative, insisting the figures are "misleading".

Speaking on Newsfile on JoyNews on Saturday, 14th March, Mr Baafi defended the financial structure of the programme and explained the payment arrangement between the government, private firms and participating banks.

According to him, the model relied on financial institutions to provide loans to beneficiary companies, with the state supporting the process through guarantees and interest support mechanisms.

Mr Baafi argued that the GH¢89.4 million cited in the audit should not be described as a fictitious liability, maintaining that the figure relates to normal financial transactions within the programme’s banking arrangements.

He stressed that the initiative was designed in partnership with banks, which assessed and financed projects, while government support helped reduce the cost of borrowing for investors.

The former deputy minister further criticised the government’s presentation of the audit findings, describing the information released to the public as “misleading”.

He maintained that the explanation provided failed to reflect how the financing structure of the 1D1F programme operates in practice.

"In a nutshell, what I am trying to say to you is that there is nothing like GH¢89.4 million, which is there as a fictitious debt; clearly, it is misleading."

"We (former administration) can confidently tell him ( the current finance minister) that this is diversionary tactics, they know that they are just trying to shift the system," he argued.

Read also: Audit uncovers fictitious GH¢89.4m debt under 1D1F programme

The One District One Factory policy was introduced to promote the establishment of at least one factory in every district as a strategy to strengthen local production and stimulate economic growth. However, the initiative was not fully implemented before the former New Patriotic Party (NPP) administration exited office after eight years in power.