GH₵661m judgment debt to benefit who?

A whopping GH₵661 million has been allocated for the payment of judgment debts in Ghana’s 2025 budget statement and economic policy.
This provision, captured in Appendix 4A on page 144 of the budget, was presented before Parliament on Tuesday, March 11, 2025.
The allocation has sparked national concern, as it lacks clarity on the specific cases for which the government expects to incur these liabilities.
Notably, the budget statement presented by Finance Minister Dr. Cassiel Ato Forson does not provide a breakdown of how this sum is expected to be distributed across various court cases.
This lack of transparency has left many questioning the rationale behind the substantial allocation, especially given that previous budgets did not make explicit line-item provisions for judgment debts.
Evidence from past budgets suggests that such allocations have either been concealed under broader expenditure categories or have not been explicitly stated. The 2025 budget’s direct allocation, therefore, raises concerns about whether the government anticipates a surge in legal claims against the state or if there are existing cases that have not been publicly disclosed.

Troubled history with judgment debts
Ghana’s experience with judgment debts has been long and costly, often diverting significant financial resources away from national development.
Judgment debt cases arise primarily due to contractual breaches, illegal contract terminations, failure to compensate for compulsory land acquisitions, and statutory violations by public officials.
These payments, often resulting from government negligence and poor contract management, have historically drained the public purse and slowed down infrastructural and social development projects.

GH₵1.8 billion judgment debts
A study by the Centre for Social Justice in 2021 estimated that, in equivalent 2019 cedi terms, judgment debts paid between 2000 and 2019 amounted to over GH₵1.8 billion.
This figure represented approximately 135% of new multilateral loans contracted by the government in 2019, 112% of total central government grants received that year, and about 30% of total health expenditures for same year.
From this total, GH₵1.3 billion (73%) arose from contractual breaches, GH₵479.2 million (25%) from the government’s failure to promptly compensate for compulsory land acquisitions, and GH₵29.9 million (1.5%) from tortious or statutory breaches by public officials.
The cumulative effect of these payments has been detrimental, redirecting funds that could have been used to improve healthcare, education, and infrastructure toward settling legal liabilities.

The legal battles
In 2024, the Office of the Attorney-General represented the State in 999 civil cases brought against it in various courts.
However, in 2025, the Attorney-General and the Ministry of Justice project a decline in cases, estimating that they will defend the Republic in approximately 700 lawsuits. While this represents a decrease of nearly 300 cases compared to 2024, the GH₵661 million allocation raises concerns about whether the government anticipates significant financial judgments despite the lower number of anticipated legal battles.

Godfred Dame avoided GH₵15 trillion
Former Attorney-General and Minister of Justice, Godfred Dame, claimed that between 2017 and 2024, the government successfully avoided judgment debts amounting to over GH₵15 trillion by diligently defending civil actions against the State.
These savings were reportedly achieved by scrutinizing civil suits, uncovering discrepancies, and challenging exaggerated claims in both local and international arbitration forums.
However, the 2025 budget allocation suggests that Ghana may still be vulnerable to significant financial liabilities due to legal disputes.

Sole Judgment Debt Commission Report
Ghana’s history of judgment debt scandals remains a sobering reminder of how systemic corruption and negligence can bleed the national economy.
Years after the Sole Judgment Debt Commission, chaired by Justice Yaw Appau, released its findings, the country continues to suffer financial hemorrhaging from reckless decision-making and mismanagement of public contracts.
The commission’s report highlighted how the arbitrary abrogation of contracts, particularly following political transitions, contributed to massive judgment debts.
Each election cycle has often brought about abrupt contract cancellations by new administrations, leading to costly legal disputes and subsequent financial settlements.
Beyond political transitions, judgment debts in Ghana have often stemmed from the government’s disregard for public procurement laws, contract mismanagement, and instances of outright corruption.
These factors collectively contribute to the persistent drain on state resources, preventing crucial investments in national development.

Strengthening legal and contract management
To curb the recurrence of costly judgment debts, Ghana must adopt stringent measures to strengthen contract management and public procurement processes. Government agencies must ensure due diligence in contract negotiations, adherence to procurement laws, and timely resolution of disputes before they escalate into costly litigation.
Additionally, public officials must be held accountable for actions that lead to unnecessary financial losses.
If Ghana is to prevent future judgment debt scandals, there must be greater transparency in financial allocations related to legal settlements, as well as a robust framework to manage state contracts and mitigate legal risks.
As Parliament scrutinizes the 2025 budget, Ghanaians will be watching closely to see if any further details will emerge on the GH₵661 million allocation.
Whether this provision represents a proactive financial strategy or a symptom of deeper systemic failures remains to be seen.
What is certain, however, is that judgment debts continue to be a heavy burden on the nation’s development, and without significant reforms, Ghana risks repeating the mistakes of the past.
By ELVIS DARKO, Accra