Ghana’s State-Owned Enterprises (SOEs) recorded approximately GH¢18.6 billion in financial management irregularities, according to findings referenced in a new International Monetary Fund (IMF) technical assistance report.
The figure is contained in the 2024 Auditor-General’s Report on the Public Accounts of Ghana, cited in the IMF report on strengthening SOE fiscal-risk management, financial oversight, governance and investment implementation.
The largest component was outstanding debtors and loans, valued at approximately GH¢12.54 billion.
A further GH¢4.58 billion related to cash irregularities, including unsupported payments and revenue that was not properly accounted for.
Other irregularities included:
- GH¢871.82 million in contract irregularities;
- GH¢335.27 million in procurement irregularities;
- GH¢191.6 million in payroll irregularities;
- GH¢77.06 million in tax irregularities; and
- GH¢4.5 million in stores irregularities.
The IMF identified the energy and roads construction sectors as areas with significant financial and procurement weaknesses.
More than 15 per cent of payables and 6.4 per cent of procurement commitments in these sectors were found to be in breach of public financial management regulations or statutory requirements.
The Electricity Company of Ghana (ECG) was specifically cited for procurement and contractual weaknesses.
A Ghana Audit Service performance audit found that ECG procured electricity meters worth approximately US$145 million through 50 contracts without complying with the Public Procurement Act.
The IMF report also highlighted unsolicited take-or-pay Power Purchase Agreements, which contributed to electricity generation capacity exceeding actual national demand and created financial obligations for the energy sector.
The Ghana Cocoa Board (COCOBOD) was also highlighted over procurement and project management weaknesses.
The report cited an audit finding that 87 per cent of contracts under COCOBOD’s cocoa roads investment portfolio were directly awarded without competitive tendering.
The IMF said weaknesses in project costing and contract management had contributed to additional financial pressures.
The findings come against a broader government effort to strengthen oversight of state-owned entities and reduce their fiscal risks.
The IMF is recommending stronger financial oversight, improved governance and closer monitoring of SOEs as Ghana seeks to limit the financial burden that poorly managed state entities can place on public finances.