EXPOSED: The GH¢8.8 Billion Hole in Ghana's Public Sector: Auditor-General’s Report Demands Forensic Investigation

By Adam Ibrahim

The Executive Summary of Fiscal Irregularity

10/28/2025 The Republic of Ghana is facing a fiscal crisis rooted in systemic mismanagement and a lack of accountability within its key state enterprises. The 2023 Auditor-General’s Report on Public Accounts: Public Boards, Corporations and Other Statutory Institutions has unveiled a shocking summary of financial irregularities, demanding immediate and rigorous investigation to stem the loss of billions of Cedis in public funds.

The report, covering the financial year ended December 31, 2023, is a damning indictment of weak internal controls and non-compliance with the Public Financial Management Act. Despite a reported decline in the total value of irregularities from the previous year, the financial hemorrhage in this single sector remains astronomical.

        The Financial Snapshot: GH¢8.8 Billion in Irregularities

The Auditor-General's report summarizes the key findings as follows:

Category of Public EntityTotal Irregularities Identified (2023)Recoverable Amount (Estimated)
Public Boards, Corporations, and Other Statutory InstitutionsGH¢8,799,263,120 (Approx. GH¢8.8 Billion)GH¢8,732,455,120 (99.24% of Total)
Other Sectors (MDAs, District Assemblies, etc.)Remainder of Total GH¢11.32 Billion-

       Four Critical Areas for Forensic Investigation

While the audit report provides a broad mandate for reform, four specific areas, representing the largest and most systemic risks, must be prioritized for a forensic investigation with the aim of surcharging and prosecuting culpable officials.

1. The Outstanding Debts and Loan Recoveries Crisis

This remains the single largest financial irregularity, representing the bulk of the recoverable GH¢8.73 billion. This figure comprises:

  • Inter-governmental Agency Debts: Debts owed by various government entities to each other.

  • Other Overdue Receivables: Large sums owed by private individuals, institutions, or other state entities for services rendered or resources supplied.

  • Unpaid Taxes and Loans: Loans/advances given to employees that remain unretired or uncollected.

DEMAND FOR INVESTIGATION: A full-scale forensic audit is required to unmask the identity of the largest corporate and individual debtors and determine why no robust action has been taken to recover these public funds. This points to possible collusion and willful negligence in debt recovery.

2. The Persistence of Procurement and Contract Irregularities

The report specifically highlighted that, unlike other irregularity types, procurement and contract irregularities remained high or even saw an increase in 2023. These often involve:

  • Failure to adhere to the Public Procurement Act, 2003 (Act 663).

  • Executing contracts without proper authorization.

  • Non-prioritization of 'Value for Money' in major contracts.

DEMAND FOR INVESTIGATION: The use of single-source or restricted tendering methods without legal justification, particularly in high-value projects undertaken by major public corporations (e.g., Energy Sector entities), must be forensically investigated to uncover potential corruption and contract inflation.

3. Payroll Fraud and Unlawful Disbursements

Irregularities related to payments to unqualified beneficiaries or staff, though smaller in monetary value than debts, represent a critical failure of internal controls with a direct human cost:

  • Payments to Deceased or Ineligible Beneficiaries: Noted in programs like the Livelihood Empowerment Against Poverty (LEAP) and the National School Feeding Programme.

  • Unwarranted Payroll Payments: Payments to retired or separated staff, resulting from a lack of timely cleanup of the payroll system.

DEMAND FOR INVESTIGATION: A cross-ministry data clean-up must be mandated and investigated, focusing on Heads of Departments (HoDs) and Finance Officers who certify payrolls, as they are legally responsible for these continuous, preventable losses.

4. Poor Cash Management and Unaccounted Revenues

Cash irregularities remain a problem, including the failure to properly account for revenues and the holding of cash outside of approved bank accounts. The report highlights cases like:

  • Non-Accountability for Funds: Monies realized from the sale of forms or services (e.g., application forms for the School Feeding Programme) not accounted for.

  • Unsupported Payments: Payments made without proper documentation or authority.

DEMAND FOR INVESTIGATION: All revenue-generating public boards must undergo an immediate systems review, investigating whether digital payment platforms are being deliberately bypassed to facilitate the pocketing of state revenue at the point of collection.

Call to Action

The Auditor-General's report concludes with a forceful recommendation for the strict implementation of all recommendations to ensure financial discipline. The sheer scale of the recoverable GH¢8.73 billion in the Public Boards and Corporations sector mandates that Parliament's Public Accounts Committee (PAC) and all relevant anti-corruption agencies elevate this audit report from a yearly formality to an active, criminal investigation file.

The resources lost represent funds that could have transformed key national infrastructure, healthcare, and education. The time for administrative warnings is over; the time for disallowance, surcharge, and prosecution is now.

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