Govt rejects GH¢8.1 billion arrears claims after audit findings

The government has rejected GH¢8.1 billion in arrears claims submitted by contractors and suppliers after an audit uncovered widespread irregularities, including unsupported documentation, duplicated invoices, falsified records and payments for work not done.

The findings were disclosed in Parliament during the presentation of a report on the verification of government arrears and commitments as of the end of 2024.

According to the report, the audit—conducted by the Ghana Audit Service in collaboration with Ernst & Young (EY) and PwC—examined a total of GH¢68.7 billion in claims submitted to the Ministry of Finance (Ghana).

Of that amount, only GH¢45.4 billion was validated for payment. The auditors rejected GH¢8.1 billion outright, while an additional GH¢13.3 billion remains under review due to incomplete documentation and lack of third-party confirmation.

Breakdown of claims

The audit covered two main categories of government obligations: unpaid Interim Payment Certificates (IPCs) and invoices, as well as Bank Transfer Advices (BTAs).

Out of GH¢50.5 billion in IPCs and invoices submitted, only GH¢29.2 billion was validated for payment. About GH¢7.1 billion was rejected, while GH¢12.2 billion is yet to be justified before any payment can be approved.

For BTAs, GH¢18.3 billion was submitted for verification. The auditors validated GH¢16.2 billion, rejected nearly GH¢1 billion, and flagged another GH¢1.1 billion for further verification.

Officials said the decision by the Ministry of Finance to suspend certain payments in January 2025 prevented the disbursement of questionable claims, including nearly GH¢1 billion in pending BTAs that were later rejected by auditors.

Fictitious claims uncovered

One of the most striking discoveries involved a GH¢89.4 million request submitted in 2024 by the former Ministry of Trade and Industry (Ghana) as the government’s contribution toward interest payments under the One District, One Factory initiative.

When auditors contacted five commercial banks listed as beneficiaries, all of them denied being owed any money by the government under the arrangement. The auditors, therefore, concluded that the liability was fictitious.

In a separate case, auditors found a supposed payment of GH¢10.5 million to a “Buffer Account” at a commercial bank. However, the bank confirmed that the account number did not exist and did not even conform to its account numbering system.

Authorities said these discoveries have prompted plans for a forensic audit of the 1D1F scheme, under which the government is reported to have spent GH¢391 million on interest subsidies by the end of 2024.

Missing food supplies

The audit also revealed discrepancies in government-funded food relief programmes managed by the Ministry of Food and Agriculture (Ghana).

Government records showed payment for 34,000 metric tonnes of rice intended to address the impact of a dry spell. However, only 24,000 metric tonnes were received and distributed, leaving 10,000 metric tonnes unaccounted for.

In another case, the ministry claimed delivery of 100,000 metric tonnes of maize valued at GH¢771.2 million, but the audit confirmed that only 11,900 metric tonnes had actually been supplied.

Transport overpayments

Further irregularities were found in a contract under the Farmer Food Relief and Recovery Programme for transporting 134,000 metric tonnes of maize and rice to farmers nationwide.

The contracted company moved only 35,000 metric tonnes—work valued at GH¢30.9 million—but received GH¢50 million in payment. In addition, the company was given 7,311 metric tonnes of rice worth GH¢11.7 million in lieu of cash.

The total payment of GH¢61.7 million far exceeded the value of work done, leading the Auditor-General to reject an additional GH¢65.2 million payment request submitted by the ministry.

Other irregularities

The audit uncovered several other troubling cases across government institutions.

The Ministry of Education (Ghana) reported GH¢160 million in unpaid allowances for teacher trainees through the Ghana Tertiary Education Commission. However, auditors found that no such arrears existed, potentially preventing a loss of more than GH¢159 million.

In another instance, GH¢6.1 million appeared on the education ministry’s payment schedule even though the same amount had already been paid by a donor partner, creating the risk of double payment.

Auditors also identified Bank Transfer Advices totaling GH¢293 million from six government institutions—including the Judicial Service (Ghana) and the Office of the Attorney‑General and Ministry of Justice (Ghana)—that had no contracts, invoices or documentation to support them.

Recycled and inflated claims

Beyond the BTAs, auditors discovered GH¢4.4 billion in claims that had already been paid between 2020 and 2024 but were resubmitted for payment.

These recycled claims originated from several ministries, including the Ministry of Roads and Highways (Ghana), the Ministry of Health (Ghana) and the Ministry of Energy (Ghana).

Additionally, duplicated and overstated claims totaling GH¢1.4 billion were identified across various ministries and agencies. The National Service Scheme (Ghana) alone overstated allowance arrears by GH¢334.5 million.

Auditors also noted GH¢161.98 million in overstated claims across several agencies, including the Ghana Highways Authority and the Ministry of Foreign Affairs and Regional Integration (Ghana).

Concerns over Agenda 111

The audit further revealed irregularities under the Agenda 111 initiative.

A total of US$7.9 million was paid to 35 contractors as advance mobilisation payments, but the contractors either failed to mobilise to project sites or carried out work not commensurate with the funds received.

The Auditor-General has issued surcharge notices to the contractors after the advance payment guarantees associated with the funds expired.

Government response

Officials described the findings as evidence of systemic abuse of Ghana’s public financial management system.

According to the statement presented to Parliament, the report exposes a pattern of fraudulent activities including fabricated claims, recycled invoices and forged delivery documents.

The government said the report has been referred to the Attorney-General for investigation and prosecution of individuals found responsible.

Authorities have also pledged stricter controls going forward, stating that no payments will be approved without full verification and no financial commitments will be entered into without a corresponding budget allocation.

The government said the measures are intended to restore discipline in fiscal management and prevent the misuse of public funds.