The 2024 Auditor-General’s report on the public accounts of Ghana has uncovered significant lapses in contract management across public institutions, with irregularities amounting to a staggering GH¢871,818,832. The losses stem largely from public boards, corporations, and statutory institutions failing to enforce key contract provisions and honour overdue obligations.

Predominant among the irregularities is the non-payment of interim payment certificates (IPCs) issued to contractors, which alone triggered GH¢615.9 million in outstanding interest liabilities. The report flags this as a recurring issue, pointing to weak oversight and delayed payments as the root causes.

“These were mainly related to the non-payment of overdue payables and failure to ensure that provisions in contracts are enforced,” the report stated.

The Auditor-General is calling on management of public boards, corporations, and other statutory institutions that were affected to strengthen internal controls and enforce contract clauses. This, the report stresses, is crucial in safeguarding public funds and restoring discipline in public procurement and contract execution.

“We therefore urged Managements to strengthen controls over contracts and ensure that clauses in contracts are enforced to the letter to safeguard the rights of Public Boards, Corporations, and other Statutory Institutions,” the report urged.

The sharp increase

The 2024 figure is by far the highest in the past six years, underlining how contract mismanagement has ballooned in recent times. A look at the historical data shows that while past irregularities ranged between GH¢4 million and GH¢280 million, 2024's GH¢871.8 million represents a sharp escalation.

The trend points to a growing gap in contract administration discipline, especially when interim contractor payments are delayed or left unsettled.

The report’s findings reinforce growing concerns about inefficiencies in the country’s public financial management systems and the fiscal risks they pose, particularly at a time when the country is under an IMF-backed economic programme that demands stricter controls on spending and improved accountability across government institutions.