Ghana’s Public Accounts Committee (PAC) has called for annual publication of all government arrears, outstanding claims, and financial commitments. This recommendation follows the Auditor-General’s rejection of GHS 8.1 billion in disputed payment claims for the 2024 fiscal year. The PAC seeks to strengthen fiscal discipline and improve government spending oversight.
The Auditor-General disallowed the GHS 8.1 billion in claims due to various irregularities. These issues included missing supporting documents, fake invoices, duplicate submissions, and forged store receipts. Several ministries, departments, and agencies submitted these problematic claims, highlighting systemic weaknesses in public financial management. The rejected claims underscore an urgent need for greater transparency and stricter controls in government accounting.
This push for transparency fits into Ghana’s broader efforts to manage its public debt and improve economic stability. The nation has faced significant fiscal challenges, making efficient and accountable public expenditure crucial. Persistent financial irregularities undermine public trust and divert essential resources from development projects. Improved transparency in disclosing government liabilities could help restore confidence among citizens and international partners. Previous audit reports have frequently highlighted issues of mismanagement and unapproved spending within various government entities. The PAC's proposals aim to address these longstanding problems by institutionalizing a clear disclosure framework.
Abena Osei Asare, Chairperson of the Public Accounts Committee, strongly emphasized the importance of this reform. She stated, “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.” She further explained that regular disclosure will improve fiscal credibility, strengthen expenditure control, and reduce the need for recurring special audits. This formal system for disclosing financial liabilities is expected to enhance accountability and curb persistent financial irregularities.
The annual publication of arrears will likely lead to greater scrutiny of government spending. It could compel ministries, departments, and agencies to maintain better financial records and comply with procurement rules. Decision-makers and markets will watch closely to see if the government adopts and implements this recommendation. Improved fiscal transparency could also positively influence Ghana’s credit ratings and attractiveness to investors. The move could also reduce the estimated GHS 17 billion in public sector losses identified in some recent Auditor-General reports. This increased transparency will also allow the public to better monitor how their taxes are spent, fostering a more informed citizenry.