Ghana’s state-owned enterprises (SOEs) recorded around GH¢18.6 billion in financial management irregularities, according to a technical assistance report from the International Monetary Fund titled “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation”.
Citing findings from the Auditor-General’s 2024 report, the Washington-based lender revealed that outstanding debtors and unrecovered loans accounted for the vast majority of the shortfalls, totalling GH¢12.54 billion in overdue receivables and trapped funds.
Cash irregularities—including unvouched payments and unrecorded revenues—amounted to GH¢4.58 billion, whilst contract breaches reached GH¢871.82 million and procurement lapses stood at GH¢335.27 million.
Payroll errors accounted for GH¢191.6 million, complemented by GH¢77.06 million in tax non-compliance and GH¢4.5 million in storekeeping anomalies.
The Fund singled out the energy and road construction sectors for severe governance and procurement failures, noting that over 15 per cent of payables and 6.4 per cent of procurement commitments violated public financial management laws.
Highlighting specific cases, the report pointed to a performance audit showing that the Electricity Company of Ghana (ECG) procured $145 million worth of electricity meters across 50 contracts without adhering to the Public Procurement Act.
The IMF further criticised unsolicited “take-or-pay” Power Purchase Agreements that forced national generation capacity far beyond actual demand, creating severe ongoing liabilities for public finances.
Similarly, the Ghana Cocoa Board (COCOBOD) was cited after auditors discovered that 87 per cent of contracts within its cocoa roads investment programme were awarded directly without competitive bidding, compounded by poor project costing and weak oversight.
Warning that chronic weakness within key state firms directly elevates central government fiscal risks, the IMF called for immediate structural reforms.
The Fund recommended tightening board appointment criteria, improving joint oversight between the Ministry of Finance and the State Interests and Governance Authority (SIGA), and introducing stricter monitoring of capital investments across all public corporations.
By: Rainbowradioonline.com/Ghana
