Ghana recorded financial irregularities totaling GHS 117.9 billion between 2015 and 2024. This significant sum highlights persistent weaknesses in financial management and accountability across public institutions.
The 2024 reports showed a combined figure of GHS 20.5 billion for irregularities, marking an 83% increase over the GHS 11.2 billion recorded in 2023. Public boards, corporations, and statutory institutions accounted for GHS 18.42 billion of this amount, while Ministries, Departments, and Agencies (MDAs) recorded GHS 2.06 billion. This surge was primarily due to a more than doubling of irregularities within public boards and corporations.
These figures, compiled from the Auditor-General’s annual reports, reflect a range of issues. They include outstanding debts, recoverable amounts, procurement breaches, and unaccounted transactions. The amount does not necessarily represent money stolen or permanently lost, but rather financial discrepancies requiring resolution. The recurring nature and increasing scale of these irregularities raise serious questions about the effectiveness of Ghana's financial controls and oversight mechanisms. This trend impacts public trust and the efficient use of taxpayer money, hindering national development efforts.
The energy sector accounted for a substantial share of the 2024 irregularities. Institutions under the Ministry of Energy recorded about GHS 15.8 billion. This represents approximately 86% of irregularities among public boards and corporations, and 77% of the total for both audit streams. The Electricity Company of Ghana (ECG) featured prominently, with issues like revenue under-declaration and procurement irregularities.
Bernard Obeng Boateng, founder and lead trainer of Finex Skills Hub, noted the varied nature of these irregularities. He stated that GHS 15.57 billion of the GHS 18.42 billion reported for public boards in 2024 involved recoverable amounts. These include debts, loans, and outstanding receivables. The remaining GHS 2.84 billion comprised administrative and other irregularities. Mr. Boateng questioned the effectiveness of the country’s financial controls and the follow-up actions after audit findings are published.
Samuel Harrison-Cudjoe, a Programmes Officer at the Ghana Anti-Corruption Coalition (GACC), attributed the recurring irregularities to a lack of effective sanctions. He explained that officials contributing to irregularities are often not held personally accountable. Audit reports typically identify positions rather than specific individuals. Officials can also transfer before audit findings are published, leaving successors to inherit unresolved issues. Mr. Harrison-Cudjoe also cited weak implementation of public financial management laws, weakened internal audit functions, and politicisation of public institutions as contributing factors. He stressed the need for stronger follow-up on audit recommendations.
Stronger enforcement of existing laws is crucial to address these persistent issues. Mr. Harrison-Cudjoe emphasized that Ghana already possesses laws capable of dealing with many identified irregularities. He stated, “The enforcement of our laws is our biggest problem.” He called for sanctions to be applied without fear or favour. Greater independence for internal audit functions would also allow concerns to be addressed earlier. The GACC’s initiative to track audit recommendation implementation in some districts has shown positive results, with an 84% increase in implementation since 2020. This demonstrates that focused efforts can yield improvements. Regular training for procurement officers on the Ghana Electronic Procurement System (GHANEPS) is also vital to ensure legal compliance.
The government and oversight bodies must prioritize strengthening accountability frameworks. This includes ensuring that recoverable funds are actually paid back to the state. The continued high levels of irregularities could deter foreign investment and strain public finances. Addressing these systemic weaknesses will be critical for Ghana's economic stability and development. Decision-makers must act decisively to restore public confidence in financial management.