Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has updated Parliament on the ongoing audit of government arrears, payables, and commitments, revealing significant preliminary findings that point to discrepancies in claims submitted for payment by various institutions.
Speaking during the Mid-Year Budget Review for 2025 on the floor of Parliament, Dr. Forson confirmed that 87 per cent of the comprehensive audit exercise, covering GH¢68.7 billion in arrears as at the end of 2024, has so far been completed.
“Mr. Speaker, the Ghana Audit Service was tasked to audit and validate GH¢68.7 billion of arrears,” he recalled, noting that the exercise is one of the bold reforms under the current administration’s broader public sector financial cleansing agenda.
Dr. Forson disclosed that of the audited amount so far, GH¢28.3 billion has been validated as genuine and eligible for payment.
However, a staggering GH¢3.6 billion worth of claims has been rejected outright. According to the Minister, these rejected claims were found to be fraught with errors, duplications, and non-compliance with the Public Financial Management (PFM) Act and public procurement rules.
In addition to the rejected claims, another GH¢562.6 million worth of payables, according to the Finance Minister, lacked adequate supporting documentation and are under further scrutiny.
“An amount of GH¢562.6 million is without adequate supporting documents,” he said, underscoring the persistent challenges with documentation and record-keeping in the public sector.
GH¢27.3 billion Arrears Pending
Dr. Forson also noted that GH¢27.3 billion of the total arrears remains pending validation. He assured the House that the entire audit process is expected to be concluded by the end of August 2025.
Once completed, Dr Forson assured that the government will make public the final validated arrears and the audit outcomes. “Mr. Speaker, the audit is expected to be completed by the end of August 2025. Once finalised, we will update the House on the findings and outcomes,” the Minister pledged.
The exercise, announced in the 2025 Budget, is being conducted by the Ghana Audit Service in partnership with international audit firms Ernst & Young (EY) and PricewaterhouseCoopers (PwC).
He explained that the audit was initiated to scrutinise the validity of claims and enforce greater transparency and accountability in public financial management.
The exercise is widely seen as a critical part of the government’s fiscal consolidation efforts under the ongoing International Monetary Fund (IMF) support programme, which prioritises transparency in the management of public resources.
The inclusion of independent international audit firms such as EY and PwC is seen as a step towards ensuring credibility and technical robustness in the audit process.
While Dr. Forson did not immediately disclose the specific sectors or institutions whose claims were rejected or flagged, the scale of rejected and undocumented claims suggests systemic weaknesses in expenditure control and contract management across government agencies.
The outcome of the audit could have far-reaching implications on Ghana’s future budgeting, especially in terms of how arrears are treated and reported in the public accounts.
Useful Lessons
The ongoing process is also expected to provide useful lessons for the implementation of new commitments tracking and budget execution monitoring systems being rolled out by the Ministry of Finance.
Public sector arrears in Ghana have long been a source of fiscal stress, often leading to budget overruns, loss of credibility in public procurement, and accumulation of domestic debt.
The current administration has committed to tackling the problem by cleaning the books, improving procurement compliance, and ensuring that only properly vetted and contractually sound claims are settled using public funds.
Dr. Forson’s update comes at a time when public interest in the management of the nation’s finances has intensified, especially as the government continues to grapple with limited fiscal space, rising interest payments, and calls for prudent public expenditure.
The validation of over GH¢28 billion in legitimate claims also means that the government faces a significant payment obligation in the months ahead, which must be factored into its cash flow and borrowing plans.
On the other hand, the rejected and undocumented claims may trigger further investigations or sanctions against individuals or institutions that failed to comply with the law.
The President, HE John Dramani Mahama, in a recent declaration, warned that his administration intends to publish the full audit report and penalise those found culpable of wrongdoing.
For Dr Forson, the process will serve as a deterrent to future fiscal indiscipline and reinforce the principles of accountability and value for money in the use of public resources.
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