State bodies lose over GH¢1.24bn to financial irregularities
— Auditor-General
Ghana’s public sector recorded more than GH¢1.24 billion in financial irregularities in the latest audit year, according to the Auditor-General’s report presented to Parliament.
The report, which covered Ministries, Departments, Agencies, and Metropolitan, Municipal and District Assemblies, flagged breaches in procurement, payroll, cash management, and contract administration as the major areas of loss.
[MMDAs] Key findings
According to the Auditor-General, the GH¢1.24bn was made up of:
- Recoverable amounts: Funds that can be retrieved from individuals or institutions due to overpayments, unearned salaries, and unaccounted store items.
- Irregular payments: Payments made without due process, including sole-sourced contracts without approval and payments without supporting documents.
- Tax irregularities: Failure by state institutions to deduct and remit statutory taxes such as PAYE, VAT, and withholding tax.
- Cash irregularities: Unpresented payment vouchers, unretired imprest, and misapplication of funds.
The Auditor-General noted that while some recoveries had been made during the audit, a significant portion remains outstanding.
MMDAs and payroll under scrutiny
The report singled out MMDAs for a large share of the infractions, citing weak internal controls and poor record-keeping. It also flagged the public payroll system, where “ghost names”, unearned salaries, and failure to validate staff led to millions in losses.
In one case, the GRA was cited for interdicting 4 officers after the seized cooking oil meant for state use was diverted. The items have since been donated to the School Feeding Programme as part of recovery efforts.
Recommendations
The Auditor-General has recommended sanctions for heads of institutions and finance officers found culpable. Key proposals include:
- Strict enforcement of the Public Financial Management Act and the Procurement Act
- Timely prosecution of offenders to serve as a deterrent
- Digitization of payroll and procurement systems to reduce human interference
- Quarterly validation of staff to eliminate ghost workers
Parliament’s Public Accounts Committee is expected to begin hearings on the report in the coming weeks. Civil society groups have called for the immediate publication of the names of institutions and individuals cited, and for funds to be recovered within a set timeline.
Vice President Professor Naana Jane Opoku-Agyemang, speaking at a separate event, urged state institutions to “focus on results, not just numbers” and to ensure public funds deliver value to citizens.
The GH¢1.24bn loss comes at a time when the government is pushing fiscal discipline to meet IMF targets and protect social programmes. The Auditor-General warned that without stronger accountability, leakages will continue to undermine development.
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