Eight others are said to be in critical condition with properties, including a house and a car reduced to ashes.
The clashes are said to have some regional and ethnic undertones, a correspondent in Brong Ahafo Anass Sabit reported.
The man who was accused of being a spy went easing himself in a community dominated by a rival ethnic group.
Anass reported that around 3:15pm, Wednesday, the other faction also paraded men with guns in an attempt to retaliate the attack on their kinsman.
They started shooting all sporadically and set one house ablaze.
The commander in charge at the Tuobodom Police Station, DSP Peter Sakyi confirmed the clashes and the deaths.
As at the time of filing this report, there is an uneasy calm as both the army and the Police from Techiman have been called in to maintain law and order.