The Ministry of Finance has uncovered what it describes as widespread financial irregularities in government arrears and payment claims after an extensive audit revealed billions of cedis in questionable liabilities submitted by Ministries, Departments and Agencies (MDAs).
Presenting a statement to Parliament on Tuesday on behalf of the Finance Minister, Cassiel Ato Forson, the Deputy Minister for Finance, Thomas Nyarko Ampem, said an audit conducted by the Ghana Audit Service in collaboration with EY and PwC uncovered massive irregularities in claims amounting to GH¢68.7 billion submitted to the Ministry of Finance.
According to the report, only GH¢45.4 billion of the total claims were validated for payment, while GH¢8.1 billion was outrightly rejected due to various irregularities including duplication, lack of documentation, falsified records, and claims for work that had not been executed. An additional GH¢13.3 billion remains under scrutiny pending further justification.
The audit examined unpaid Interim Payment Certificates (IPCs), invoices, and Bank Transfer Advices (BTAs) submitted by MDAs as outstanding government liabilities as at the end of 2024.
Fictitious claims uncovered
One of the most striking discoveries involved a GH¢89.4 million debt claim submitted by the then Ministry of Trade and Industry under the government’s One District, One Factory (1D1F) initiative.
The claim was meant to cover government contributions toward interest payments to five commercial banks. However, when auditors contacted the banks for confirmation, all five institutions denied being owed any such amount, leading auditors to conclude the debt was entirely fictitious.
In another alarming case, a payment of GH¢10.5 million was reportedly transferred to a “Buffer Account” at a commercial bank. The bank later confirmed that the account number did not exist and did not even conform to its account numbering format.
The Deputy Finance Minister warned that without the audit intervention, millions of cedis in public funds could have been lost through fraudulent claims.
Missing food supplies under dry spell intervention
The audit also exposed discrepancies in government food relief interventions.
Government records indicated that 34,000 metric tonnes of rice were purchased to support farmers during the dry spell in 2024. However, the Ministry of Food and Agriculture confirmed receiving and distributing only 24,000 metric tonnes, leaving 10,000 metric tonnes unaccounted for despite full payment being made.
Similarly, a contract for the supply of 100,000 metric tonnes of maize worth GH¢771.2 million revealed that only 11,900 metric tonnes were actually delivered.
Questionable transport payments
Under the Farmer Food Relief and Recovery Programme, a transport company contracted to move 134,000 metric tonnes of grains was paid GH¢50 million, although it transported only 35,000 metric tonnes worth GH¢30.9 million.
The company also received 7,311 metric tonnes of rice valued at GH¢11.7 million as additional compensation, bringing total payments to GH¢61.7 million, far exceeding the value of the work done.
Fraudulent documentation and recycled claims
Auditors also uncovered GH¢293 million in Bank Transfer Advices across six government institutions that had no supporting documentation, including contracts or records of completed work.
Further investigations revealed forged Stores Receipt Advices (SRAs) worth GH¢9.4 million, including cases within the Ministries of Defence and the Judicial Service where goods claimed to have been delivered were never supplied.
In addition, claims totaling GH¢4.4 billion that had already been paid between 2020 and 2024 were fraudulently resubmitted for payment by several MDAs.
The audit also identified GH¢1.4 billion in duplicated and overstated claims, including GH¢334.5 million in overstated allowances under the National Service Scheme.
Agenda 111 concerns
The report further revealed irregularities in the government’s hospital construction programme, Agenda 111.
A total of US$7.9 million paid to 35 contractors as advance mobilisation funds was found to have been largely unaccounted for, as many contractors had either failed to mobilise to site or carried out work that did not match the amounts received. The mobilisation guarantees attached to the payments have also expired.
Government promises accountability
Mr. Ampem told Parliament that the findings exposed deep weaknesses in Ghana’s public financial management systems and a troubling culture of fraudulent claims against the state.
He announced that the Finance Minister had referred the Auditor-General’s report to the Attorney-General for further investigations and possible prosecutions.
“The Ghanaian people demand accountability, and under the government of President John Dramani Mahama, that demand will be met with action,” he said.
He assured Parliament that the Ministry of Finance would strengthen financial controls to ensure that no payment is made without full verification and that public officials involved in fraudulent activities will be held accountable.
