Ghana’s Auditor-General, Johnson Akuamoah Asiedu, has uncovered significant financial reporting irregularities, including an overstatement of the country’s public debt by GH¢138.91 billion, in the 2024 Whole-of-Government Accounts (WGA).
The revelations are detailed in the Auditor-General’s Report on the Public Accounts of Ghana for the Year Ended 31 December 2024, following an independent audit of the government’s consolidated financial statements prepared by the Controller and Accountant-General’s Department (CAGD), in line with the Public Financial Management Act, 2016 (Act 921).
Key Findings:
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Public Debt Overstated by GH¢138.91 Billion:
The WGA significantly misrepresented Ghana’s debt position. The Auditor-General recommended urgent reconciliation between the CAGD and the Ministry of Finance to correct both overstatements and omissions. -
Investment Misclassification:
GH¢74.24 billion recorded as provisions for investments should have been classified as impairment losses, violating International Public Sector Accounting Standard (IPSAS) 41. -
Unreported Tax Receivables:
Receivables for assessed but uncollected income tax and VAT were not recognised in the accounts, contrary to IPSAS 23, suggesting a lack of coordination between the CAGD, Ghana Revenue Authority, and the Finance Ministry. -
Lack of Asset Impairment Testing:
The CAGD failed to conduct impairment tests on non-financial assets, breaching IPSAS 21 and 26. The report called for the establishment of a formal process for regular asset evaluations. -
Inter-Company Account Discrepancies:
Inter-Company Account balances rose from GH¢7.99 billion at the beginning of the year to GH¢8.55 billion at year-end — figures that should have netted to zero post-consolidation, indicating unresolved accounting inconsistencies. -
GIFMIS Non-Compliance:
Many public entities failed to process transactions through the Ghana Integrated Financial Management Information System (GIFMIS). The report recommended strict enforcement of the PFM Act, supported by system upgrades, capacity building, and sanctions for repeat offenders. -
Lack of Transparency in Investments:
Disinvestments totalling GH¢10.30 billion and new investments of GH¢19.25 billion lacked narrative disclosures and financial notes, obscuring the rationale, risks, and expected returns from the public eye.
Conclusion:
The Auditor-General emphasized that while the audit’s primary purpose was to provide an opinion on government financial statements, the numerous misstatements, omissions, and control weaknesses urgently require corrective action to strengthen fiscal transparency, accountability, and data integrity in Ghana’s public financial management systems.
