Parliament of Ghana has referred a special audit report on GH¢68.7 billion in government arrears and payables to the Public Accounts Committee of Parliament (PAC) for investigation following the discovery of suspected irregularities and questionable payment claims.
The report was presented to Parliament on Tuesday, March 10, by the Deputy Finance Minister, Thomas Nyarko Ampem, on behalf of the Finance Minister, Dr Cassiel Ato Forson.
It relates to an audit conducted by the Ghana Audit Service on government arrears and payables as of the end of 2024.
Following the presentation, the First Deputy Speaker of Parliament, Bernard Ahiafor, referred the report to the PAC for detailed examination and directed the committee to complete its work within three weeks.
Audit of GH¢68.7bn claims
According to the report, the Ghana Audit Service conducted the verification exercise in collaboration with international professional services firms Ernst & Young (EY) and PricewaterhouseCoopers (PwC).
The review examined unpaid Interim Payment Certificates (IPCs), invoices and Bank Transfer Advices (BTAs) submitted by contractors and suppliers through various ministries, departments and agencies.
In total, claims amounting to GH¢68.7 billion were presented for verification.
However, the audit determined that GH¢8.1 billion of the claims could not be validated and were therefore rejected.
Irregularities identified
Mr Ampem told lawmakers that the rejected claims were flagged for several irregularities.
“A total of GH¢8.1 billion was rejected for various reasons, including unsupported documentation, duplication, overstatements, already-paid items, falsified stores receipt advice and cases where no work had been done,” he said.
Despite the rejected claims, the audit validated GH¢45.4 billion as legitimate obligations to contractors and suppliers. The government is expected to settle these payments subject to fiscal space and additional verification processes.
Officials say the remaining claims are still undergoing reconciliation and review.
Pressure on public finances
Government arrears to contractors and suppliers have long been a major fiscal challenge in Ghana, often creating cash-flow difficulties for businesses and delaying infrastructure projects.
Economists say large arrears can also distort public finances by creating hidden liabilities not fully reflected in annual budgets.
The audit was therefore conducted to determine the actual size and legitimacy of government payables as the country works to strengthen fiscal discipline.
PAC investigation
By referring the report to the PAC, Parliament aims to ensure accountability in the management of public funds.
The committee is expected to examine the findings, summon relevant officials and determine whether any wrongdoing occurred.
Lawmakers say the investigation will be crucial in identifying the source of the disputed claims and recommending sanctions where necessary.
The PAC is expected to submit its findings and recommendations to Parliament after completing its review within the three-week deadline.
