Finance Ministry exposes large-scale financial irregularities after a nationwide audit of government arrears

Finance Ministry: A major audit of government arrears has uncovered billions of cedis in questionable claims, missing resources and suspected fraudulent transactions within Ghana’s public financial management system.

Presenting a statement to Parliament on behalf of Finance Minister Cassiel Ato Forson, Deputy Minister for Finance Thomas Nyarko Ampem described the findings as evidence of a “systemic plunder” of state resources.

The audit, conducted by the Ghana Audit Service with support from global accounting firms Ernst & Young and PwC, examined GH¢68.7 billion worth of unpaid invoices and Bank Transfer Advices (BTAs) recorded as government arrears at the end of 2024.

According to the findings, GH¢45.4 billion of the claims were validated as legitimate. However, GH¢8.1 billion was rejected outright due to duplicated invoices, inflated figures and falsified documentation. An additional GH¢13.3 billion could not be verified because of missing contracts or lack of confirmation from third parties.

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“Fictitious” debts under 1D1F initiative

One of the most troubling discoveries involved the government’s One District One Factory (1D1F) programme.

In 2024, the Ministry of Trade and Industry reportedly requested GH¢89.4 million to be transferred to five commercial banks as interest subsidies under the scheme.

However, when auditors contacted the banks, all of them denied that the government owed them any funds under the arrangement. As a result, auditors described the GH¢89.4 million claim as a “fictitious” debt.

Further concerns emerged around a supposed “Buffer Account” that reportedly received a GH¢10.5 million payment. Auditors discovered that the account number did not exist and did not correspond to the bank’s internal numbering system.

Government officials say these revelations will trigger a full forensic audit of the One District One Factory initiative, which has reportedly received about GH¢391 million in subsidies from the state.

Missing food supplies and inflated logistics payments

The audit also uncovered significant discrepancies in agricultural supply programmes.

During a dry spell in 2024, the government reportedly paid for 34,000 metric tonnes of rice meant for relief distribution. However, auditors found that 10,000 metric tonnes of the rice could not be accounted for.

Similarly, records indicated that 100,000 metric tonnes of maize worth GH¢771.2 million had been delivered. In reality, only 11,900 metric tonnes were confirmed as supplied.

In the transport sector, auditors found that a logistics company received GH¢61.7 million for services that were actually valued at GH¢30.9 million. Part of the payment included GH¢11.7 million worth of rice provided instead of cash.

Ghost arrears discovered in education sector

Irregularities were also detected in the education sector.

The Ministry of Education reported GH¢160 million in unpaid teacher trainee allowances. However, verification by the Ghana Tertiary Education Commission found that there were no outstanding arrears.

In addition, auditors identified GH¢4.4 billion in “recycled” claims — invoices that had already been paid between 2020 and 2024 but were resubmitted again for payment.

Government vows action

Deputy Minister Thomas Nyarko Ampem said the current administration would not allow such practices to continue.

He stressed that the government is determined to restore transparency and accountability in public financial management.

The report has been forwarded to the Attorney-General’s Department for further investigation and possible prosecution of individuals involved in what officials described as the “rape of the public purse.”

The Ministry of Finance has also announced that going forward, no government payments will be made unless they undergo strict verification processes.