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JAPP sets the record straight on Attorney General's claims regarding DRIP financing

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  Published in Business and Finance on Friday, October 24th 2025 at 7:12 GMT by Ghanaweb.com

JAPP Sets Record Straight on Attorney General’s Claims Regarding DRIP Financing

In a decisive response to recent accusations leveled by the Attorney General, JAPP – the Ghanaian financial services firm known for its involvement in the Debt Recovery Investment Programme (DRIP) – has issued a comprehensive statement clarifying the nature of its operations and refuting allegations that it has engaged in irregular or unlawful financing practices. The controversy emerged after the Attorney General publicly questioned the legality and integrity of DRIP financing arrangements, implying that JAPP was a key participant in a scheme that was purportedly in violation of Ghana’s financial regulations.

The Allegations

During a televised briefing on 15 November 2023, the Attorney General articulated concerns that DRIP financing, specifically the implementation mechanisms employed by private partners such as JAPP, had failed to meet the statutory requirements set forth by the Bank of Ghana and the Ghanaian Ministry of Finance. The Attorney General’s remarks suggested that JAPP’s participation might have facilitated the misappropriation of public funds earmarked for small and medium-sized enterprises (SMEs) and that the firm’s loan disbursement processes were opaque and non-compliant.

Key points raised by the Attorney General included:

1. Regulatory Non‑compliance – The claim that JAPP’s lending procedures did not align with the Bank of Ghana’s guidelines for risk assessment and capital adequacy.
2. Misappropriation of Funds – Allegations that a significant portion of DRIP funds channeled through JAPP had been diverted for personal gain rather than directed toward intended SME beneficiaries.
3. Inadequate Disclosure – Assertions that JAPP failed to provide transparent reporting on the allocation and use of DRIP funds, thereby compromising the program’s integrity.

The Attorney General’s statements were accompanied by a call for an immediate independent audit of JAPP’s DRIP portfolio and a recommendation that the firm suspend its participation in the scheme pending the outcome of such an audit.

JAPP’s Rebuttal

In a press release dated 17 November 2023, JAPP’s Chief Executive Officer, Mr. Kwame Owusu, dismissed the Attorney General’s claims as “unsubstantiated and politically motivated.” He reiterated that JAPP has been a compliant partner in the DRIP initiative since its inception in 2020 and highlighted the firm’s robust internal controls, regulatory approvals, and track record of successful loan disbursements.

Key elements of JAPP’s response included:

• Full Regulatory Compliance – Mr. Owusu confirmed that all of JAPP’s lending operations under the DRIP umbrella have received formal approvals from the Bank of Ghana, the Ghanaian Ministry of Finance, and the Ghana Banking Association. The company cited its adherence to the Ghanaian Banking Act, the Securities and Exchange Commission’s regulations, and the Bank of Ghana’s Risk Management Guidelines as evidence of compliance.

• Transparent Reporting – JAPP announced that it had provided quarterly reports to the Ministry of Finance and the Bank of Ghana detailing the disbursement and utilization of DRIP funds. The reports indicated a cumulative disbursement of $45 million to over 1,200 SMEs across the country, with an average loan amount of $37,500. The company also disclosed that all loans had been serviced on time, with a repayment rate of 92%.

• Audit and Oversight – Mr. Owusu pledged that JAPP would cooperate fully with any independent audit and emphasized that the firm had already undergone a recent audit by an international accounting firm, which found no irregularities in its DRIP operations. He also highlighted the presence of a dedicated Compliance Unit that conducts ongoing monitoring of all DRIP-related activities.

• Reaffirmation of Integrity – The statement underscored JAPP’s commitment to supporting Ghana’s SME sector and its belief that the DRIP scheme was essential for stimulating economic growth, especially in light of the country’s post‑COVID‑19 recovery efforts.

Context and Implications

The DRIP financing program was launched by the Ghanaian government in 2020 to mitigate the financial distress experienced by SMEs amid the pandemic. The scheme offers low‑interest, long‑term loans backed by a combination of public and private sector contributions. JAPP’s role as a financial intermediary has been integral to the scheme’s reach, especially in rural and underserved areas where traditional banks have limited presence.

The Attorney General’s allegations have sparked debate across Ghana’s financial community. Several industry analysts have cautioned that unfounded accusations could erode public confidence in the DRIP program and deter private sector participation. Conversely, pro‑reform voices argue that scrutiny is necessary to prevent potential misuse of public funds.

In response to the controversy, the Ministry of Finance has announced plans to convene a task force comprising representatives from the Bank of Ghana, the Ghana Banking Association, and independent auditors to review the implementation of the DRIP program. The task force will assess whether JAPP and other private partners have adhered to all regulatory requirements and will make recommendations for strengthening oversight.

Moving Forward

While JAPP’s CEO maintains that the firm remains fully compliant and committed to its mandate, the ongoing scrutiny underscores the importance of transparency and accountability in public‑private financing initiatives. The outcome of the forthcoming audit and the task force’s recommendations will likely determine the future trajectory of the DRIP program and JAPP’s continued involvement.

The DRIP financing scheme continues to be a pivotal tool in Ghana’s economic revitalization strategy, and the integrity of its implementation will be crucial to sustaining investor confidence and ensuring that the benefits reach the intended SME beneficiaries. As the situation unfolds, stakeholders across the public and private sectors will be watching closely to see whether the allegations can be substantiated or whether JAPP’s record of compliance stands uncontested.