The Auditor-General has questioned the procurement of seedlings under the Green Ghana Project, revealing that the government could have saved approximately GH¢94.6 million had the Ministry of Lands and Natural Resources (MLNR) continued engaging Local Seedling Suppliers (LSSs) instead of procuring seedlings from a private company at significantly higher prices.
The findings are contained in the Performance Audit Report of the Auditor-General on the Management of the Green Ghana Project by the Ministry of Lands and Natural Resources, which assessed the implementation of the nationwide afforestation programme from 2021 to 2024.
According to the report, procuring seedlings through Local Seedling Suppliers “would have been more economical” and the Ministry “would have saved an amount of approximately GH¢94.6 million” while also fulfilling the project’s objective of improving the livelihoods of local communities.
The report further stated: “Therefore, there is no assurance that the procurement processes used by the subcommittee and the Chief Director of the MLNR guaranteed value for money in the procurement of seedlings.”
The audit found that although the Ministry engaged Local Seedling Suppliers during the 2021 and 2022 editions of the Green Ghana Project, it abandoned that arrangement in 2023 and 2024 and instead awarded the supply of approximately 11.1 million seedlings to Richie Plantations through a single-source procurement process.
According to the report, the Forestry Commission’s approved prices for the seedlings ranged between GH¢0.50 and GH¢1.50 per seedling. However, Richie Plantations supplied similar seedlings at an average cost of GH¢9.50 per seedling, comprising an average purchase price of GH¢5.50 and a fixed transportation cost of GH¢4.
The Auditor-General’s analysis showed that government spent GH¢105.76 million on the procurement of seedlings from Richie Plantations for the 2023 and 2024 editions of the project. Had the Ministry procured the seedlings through Local Seedling Suppliers at the Forestry Commission’s approved prices, the report estimated that the total cost would have been GH¢11.13 million, representing potential savings of GH¢94,629,505.50.
The Auditor-General observed that the procurement arrangement also undermined one of the primary objectives of the Green Ghana Project, which was to enhance the livelihoods of Local Seedling Suppliers in rural communities through their participation in the production and supply of seedlings.
The report noted that while the Ministry claimed Local Seedling Suppliers lacked the capacity to produce the required seedlings, available records suggested otherwise.
For instance, the audit found that in 2022 alone, Local Seedling Suppliers successfully supplied 17.26 million seedlings, representing about 65 per cent of all seedlings planted under the project. Since the annual target for both the 2023 and 2024 editions was 10 million seedlings, the Auditor-General concluded that the suppliers had demonstrated sufficient capacity to meet government demand.
“This gives an indication that, contrary to the Chief Director’s claim, the Local Seedling Suppliers had the capacity to supply and deliver the seedlings for the 2023 and 2024 Green Ghana Project,” the report stated.
The audit further revealed that while Local Seedling Suppliers were excluded from the project in 2023 and 2024, government still owed them approximately GH¢39.5 million for seedlings supplied during the 2021 and 2022 editions.
According to the report, 734 Local Seedling Suppliers had not been paid for more than 16.1 million seedlings, with payment delays ranging between 36 and 48 months.
Interviews conducted by the audit team revealed that repeated visits by the affected suppliers to Forestry Commission district offices and its headquarters in Accra to demand payment yielded no results.
The suppliers told auditors that the prolonged delay in payment had caused them severe financial losses and affected their livelihoods.
The report further noted that despite the outstanding indebtedness to Local Seedling Suppliers, the Ministry paid GH¢70 million to Richie Plantations for seedlings supplied for the 2023 Green Ghana Project.
Beyond procurement issues, the Auditor-General identified weaknesses in the planning and implementation of the flagship afforestation programme.
According to the report, the Ministry and the Forestry Commission failed to adequately plan for soil testing and soil-to-seedling species matching before planting, increasing the likelihood of poor seedling survival.
The audit cited one instance at the Kpligine community in the Buligu Forest Reserve in the Northern Region, where approximately 80 per cent of teak seedlings died after being planted on flood-prone, waterlogged land that was unsuitable for the species.
The report also criticised the project’s budgeting process, describing it as inadequate and unrealistic, a situation that contributed to funding gaps, delayed payments and implementation challenges.
The Auditor-General concluded that the Ministry “did not adequately plan for the effective implementation of the Green Ghana Project” and that its procurement process “did not ensure value for money.”
Among the recommendations, the Auditor-General urged the Ministry to use the Forestry Commission’s approved seedling prices as the benchmark for future procurements, involve the procurement units of both the Ministry and the Forestry Commission in all procurement processes, properly document procurement activities to enhance transparency and accountability, and make arrangements to settle the outstanding debts owed to Local Seedling Suppliers.
Responding to the findings, the Ministry maintained that Local Seedling Suppliers were not engaged for the 2023 and 2024 projects because outstanding debts and budgetary constraints made it impossible to continue working with them. It further stated that Richie Plantations had already secured approval from the Public Procurement Authority to raise seedlings for afforestation and reforestation programmes, and that the approved prices took into account seedling quality, transportation and direct delivery to planting sites.
However, the Auditor-General maintained that the procurement approach adopted under the Green Ghana Project failed to demonstrate value for money and reiterated that government could have achieved substantial savings while supporting local economies had it retained Local Seedling Suppliers.
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