The Public Accounts Committee (PAC) of Parliament has called on the Ministry of Finance to conduct annual audits of all government arrears claims. This action aims to prevent widespread financial irregularities and ensure greater accountability in public financial management.
Instead of waiting until a government's tenure ends, these yearly audits would address recurring infractions identified in Auditor-General’s reports. These infractions include unsupported expenditures, broken procurement rules, weak internal controls, and delayed reporting of funds. Such issues undermine public trust and weaken confidence in state institutions.
This initiative responds to a persistent challenge within Ghana’s public service, where financial lapses affect budget integrity. Improving public financial management is crucial for Ghana’s economic stability. The country has faced significant fiscal pressures, making efficient use of public funds vital for economic recovery and growth. Better accountability can improve investor confidence and Ghana's credit rating.
Abena Osei Asare, Chairperson of the PAC, made this call at the end of a zonal hearing in Ada. She stressed that accountability must be embedded in every step of the financial process. This includes decision-making, documentation, procurement, certification, and payment approval. Mrs. Osei Asare also urged the Ministry of Finance to strengthen training programs for public officials handling expenditure management. This training should cover requirements of the revamped Public Financial Management Act.
Conducting annual special audits will help reduce financial excesses and improve accountability. It will also enhance transparency in managing government arrears. This will strengthen fiscal credibility, improve control over spending, and decrease the need for repeated special audits. Greater fiscal discipline is essential for Ghana to meet its economic targets and manage public debt effectively.
Moving forward, the Ministry of Finance’s response to this call will be closely watched by citizens and financial markets. Stronger audit mechanisms could lead to more efficient government spending and reduced corruption. This would contribute positively to Ghana's overall economic outlook. It could also influence budget allocations and resource availability for key development projects.
The emphasis on personal integrity and ethical leadership within the civil service is critical. This approach goes beyond just laws and systems, highlighting the importance of human factors in financial oversight. This holistic approach to accountability is expected to yield better results in managing state resources. It will help to build a more transparent and responsible public sector.
The PAC’s recommendation aligns with international best practices for public finance oversight. Many developed nations conduct regular, sometimes quarterly, audits of government accounts. Adopting this practice demonstrates Ghana's commitment to modernizing its financial governance. This step can enhance the credibility of its financial reporting to international bodies and investors.