Parliament has been presented with startling revelations of financial irregularities involving billions of cedis in unpaid government obligations, following a nationwide audit exercise commissioned by the Ministry of Finance to verify outstanding claims submitted by contractors, suppliers and state institutions.

The disclosure was made on the floor of Parliament by Deputy Minister for Finance, Thomas Nyarko Ampem, who read a statement on behalf of the Finance Minister, Dr. Cassiel Ato Forson.

According to the statement, the Ghana Audit Service, working in collaboration with international audit firms EY and PwC, conducted a comprehensive verification and validation exercise covering claims amounting to GH¢68.7 billion submitted to the Ministry of Finance as unpaid Interim Payment Certificates (IPCs), invoices and Bank Transfer Advices (BTAs).

The audit revealed that GH¢50.5 billion of the claims were linked to outstanding IPCs and invoices, while GH¢18.3 billion related to Bank Transfer Advices, which represent payment instructions already processed by government agencies but awaiting cash settlement at the Controller and Accountant-General’s Department.

However, the verification exercise exposed numerous irregularities, including overpayments, fictitious debts, unsupported claims and questionable transactions across several government programmes.

Overpayments In Dry Spell Relief Programme

One of the most disturbing findings relates to expenditures under the Farmer Food Relief and Recovery Programme, introduced to support farmers affected by the severe dry spell experienced in 2024.

According to the audit, a transport company was contracted to move 134,000 metric tonnes of maize and rice to farmers nationwide at a total contract sum of GH¢115.2 million.

Investigations revealed that the company transported only 35,000 metric tonnes of the food items, a volume which should have cost GH¢30.9 million based on the agreed rates. Despite this, the company was paid GH¢50 million, far exceeding the value of the work done.

In addition to the cash payment, the company was also handed 7,311 metric tonnes of rice, equivalent to 14,622 bags of 50kg rice, valued at GH¢11.7 million, as compensation for work that auditors determined had not been carried out.

The payments brought the total compensation to GH¢61.7 million, prompting the Auditor-General to reject a further GH¢65.2 million additional payment requested by the Ministry of Food and Agriculture for the same transport contractor.

Missing Rice Meant For Dry Spell Victims

The audit further uncovered discrepancies in the government’s procurement of food supplies meant to mitigate the effects of the dry spell.

Government records showed that the state had fully paid for 34,000 metric tonnes of rice to support affected communities. However, the Ministry of Food and Agriculture could only account for the receipt and distribution of 24,000 metric tonnes.

This leaves 10,000 metric tonnes of rice unaccounted for, despite full payment having been made for the entire quantity.

Maize Supply Discrepancy

Even more alarming was the discovery relating to a separate contract for the supply of 100,000 metric tonnes of maize to support food security interventions.

The Ministry of Food and Agriculture submitted Stores Receipt Advice documents to the Ministry of Finance confirming the delivery of the maize consignment, which was valued at GH¢771.2 million, as the basis for payment.

However, the audit found that only 11,900 metric tonnes of maize were actually supplied and distributed.

The documentation supporting the alleged delivery had been accompanied by a checklist certified by the internal auditor of the ministry, raising serious concerns about internal controls within the institution.

Fictitious GH¢89.4m 1D1F Debt

The audit also exposed a fictitious debt claim of GH¢89.4 million linked to the government’s One District, One Factory (1D1F) industrialisation initiative.

According to the findings, the then Ministry of Trade and Industry in 2024 submitted a request to the Ministry of Finance for GH¢89.4 million, which it claimed represented government’s contribution toward interest payments owed to five commercial banks under the 1D1F financing arrangement.

The Ministry of Finance subsequently processed the request and forwarded it to the Controller and Accountant-General’s Department for payment.

However, when auditors contacted the five banks to verify the claim, all of them denied that the government owed them any such amount.

The auditors concluded that the GH¢89.4 million liability was entirely fictitious, warning that the funds could have been wrongfully disbursed if the verification exercise had not been conducted.

Non-Existent “Buffer Account”

Another suspicious transaction involved a payment of GH¢10.5 million, which records indicated had been transferred into an account described as the “Buffer Account” at a commercial bank.

Upon verification, the bank confirmed that it had never received such a payment and that the account number cited did not exist within its banking system. The number also failed to conform to the bank’s account numbering format.

Auditors therefore concluded that the supposed payment had been directed to a completely fictitious account.

In light of these discoveries, government has indicated that the entire One District, One Factory programme will be subjected to a full forensic audit, especially considering that the state had reportedly spent GH¢391 million as interest subsidies for the initiative as of the end of 2024.

Billions of Cedis In Questionable Claims

Beyond the specific irregularities, the audit also led to the rejection of significant portions of the arrears claims submitted by various Ministries, Departments and Agencies (MDAs).

The audit rejected about GH¢1 billion worth of Bank Transfer Advices, which represented invoices and payment certificates processed by MDAs in 2024, approved by the Ministry of Finance and awaiting payment at the Controller and Accountant-General’s Department.

According to the Finance Ministry, these payments would likely have been honoured if government had not taken the decision in January 2025 to halt payments pending verification.

Additionally, about GH¢7.1 billion worth of outstanding IPCs and invoices were rejected after auditors discovered serious anomalies, including missing documentation, duplicate claims, recycled invoices, inflated amounts and payments requested for work that had not been performed.

A further GH¢13.3 billion in claims is still undergoing validation because of incomplete documentation, lack of third-party confirmation and the absence of supporting contracts.

Government Tightens Financial Oversight

The Finance Ministry told Parliament that the verification exercise forms part of government’s broader efforts to strengthen public financial management and prevent the accumulation of illegitimate arrears.

The findings have also raised serious questions about oversight mechanisms within several state institutions and may trigger further investigations and possible sanctions against officials found responsible for the irregularities.

The government maintains that the ongoing validation process is necessary to ensure that only legitimate obligations of the state are honoured, while safeguarding public funds from abuse.