Ghana’s Public Accounts Committee (PAC) has urged the government to establish mandatory annual reporting for all outstanding claims, government arrears, and financial commitments. This directive follows the Auditor-General’s rejection of GHS 8.1 billion in disputed payment claims for the 2024 financial year.
The Auditor-General disallowed these claims from various ministries, departments, and agencies. The rejections stemmed from significant irregularities including missing supporting documents, fake invoices, duplicate submissions, and forged store receipts. These issues highlighted a critical need for enhanced fiscal discipline and improved oversight of government spending.
This push for transparency aligns with broader efforts to improve Ghana’s public financial management and combat perennial fiscal leakages. Historically, inadequate record-keeping and a lack of clear accountability for government liabilities have plagued public finances. The persistent issue of uncleared arrears and irregular financial practices often surfaces in annual Auditor-General reports, undermining public trust and fiscal stability.
Abena Osei Asare, Chairperson of the Public Accounts Committee, emphasised the need for greater transparency. She made these remarks during the Committee’s review of the 2024 Auditor-General’s reports. She stated that formal systems for disclosing arrears would enhance accountability and reduce the need for repeated audit interventions.
“The committee wishes to strongly emphasize that government must institutionalize the annual publication of all arrears, outstanding claims and commitments. Transparency in this area is critical,” Osei Asare stated. She added that regular disclosure would improve fiscal credibility, strengthen expenditure control, and reduce the need for recurring special audits of this nature.
The absence of a consistent disclosure framework creates reporting gaps, according to the Committee. These gaps leave public finances vulnerable to misuse and inefficiency. Implementing a mandatory annual reporting system would provide a clearer picture of the government’s financial health.
Moving forward, the government must formally respond to PAC's recommendations and demonstrate a commitment to institutionalising the reporting framework. Decision-makers will closely monitor legislative action and the implementation of new guidelines for financial accountability. Markets and citizens will also watch for improvements in the management of public funds following these proposals.
This reform aims to prevent future instances of disallowed claims and bolster fiscal responsibility. It promises to enhance Ghana’s overall economic stability and investor confidence. The institutionalization of annual reporting is a key step towards achieving these vital objectives.