Ghana is grappling with the issue of corruption, and one potential solution is the implementation of unexplained wealth and lifestyle audit laws. These laws would enable the state to investigate and potentially confiscate assets that are disproportionate to an individual’s legitimate income.
What are Lifestyle Audits?
Lifestyle audits involve examining an individual’s financial records and lifestyle to determine if their spending habits and assets align with their declared income. The Ghana Revenue Authority (GRA) has the power to conduct lifestyle audits under the Revenue Administration Act 2016. If discrepancies are found, the GRA can impose penalties and tax assessments.
Benefits of Unexplained Wealth Laws
Implementing unexplained wealth laws would allow the state to target individuals with unexplained wealth, potentially reducing corruption. Special Prosecutor Kissi Agyebeng advocates for including the principle of Lifestyle Audit Non-Conviction Asset Recovery in Ghana’s constitution. This would enable the state to confiscate unexplained wealth and detect fraud.
Challenges and Proposals
Some experts, like former Auditor-General Daniel Domelevo, believe Ghana urgently needs a “source of wealth law” to compel the state to conduct lifestyle audits. Others propose more frequent asset declarations and stricter controls on wealth accumulation. The constitutional review committee has also recommended giving the Auditor-General the power to verify declarations and issue official certificates confirming accuracy.
Conclusion
Implementing unexplained wealth and lifestyle audit laws in Ghana could be a significant step towards reducing corruption. By empowering the state to investigate and confiscate unexplained wealth, Ghana can promote transparency and accountability among public officials and high-net-worth individuals. Alexander Afriyie