Inusah Fuseini, the Minister for roads and highways, has denied paying Shatta Wale GHC80,000 to perform at his campaign launch in Tamale.
In an interview with Accra-based Joy FM, Mr Fuseini said: "I didn't pay a dime to Shatta Wale."
He said the dancehall artiste was a friend who had offered his services for free.
Earlier, Mr Fuseini's spokesman, Hamza Suhuyini, said on the same network that the minister was considering legal action against the Daily Guide newspaper which he said carried the story.
On Sunday, a pro-NDC group in Tamale, the Aluta Boys, seized a vehicle belonging to Mr Fuseini after accusing him of not keeping a promise to get them jobs.
The incident and news that he paid Shatta Wale GHC80,000 have overshadowed the his campaign launch, which reportedly attracted a massive crowd.