Parliament has referred a special audit report on GH¢68.7 billion in government arrears and payables to the Public Accounts Committee (PAC) for investigation after the exercise uncovered suspected irregularities, falsified records and questionable payment claims.

The report, presented to Parliament on Tuesday, March 10, was submitted by the Ministry of Finance through the Deputy Finance Minister, Thomas Nyarko Ampem, acting on behalf of Finance Minister Cassiel Ato Forson.

It relates to the Ghana Audit Service report on arrears and payables as at the end of 2024.

The First Deputy Speaker of Parliament, Bernard Ahiafor, subsequently referred the report to the PAC for detailed examination and directed the committee to conclude its investigation within three weeks.

Audit of GH¢68.7 billion claims

According to the report, the Ghana Audit Service, working in collaboration with international professional services firms Ernst & Young (EY) and PricewaterhouseCoopers (PwC), conducted a verification and validation exercise on arrears submitted to the Finance Ministry by various ministries, departments and agencies.

The audit focused on unpaid Interim Payment Certificates (IPCs), invoices and Bank Transfer Advices (BTAs) owed to contractors and suppliers.

In total, claims amounting to GH¢68.7 billion were presented for verification.

However, the audit found that GH¢8.1 billion of the claims could not be validated and were therefore rejected.

Irregularities and suspected fraud

Presenting highlights of the report to Parliament, Mr Ampem explained that the rejected claims were flagged for several irregularities.

“A total of GH¢8.1 billion was rejected for various reasons, including unsupported documentation, duplication, overstatements, already-paid items, falsified store receipts advice and cases where no work had been done,” he told lawmakers.

The findings have raised concerns about possible fraudulent claims embedded within the massive stock of government arrears accumulated over previous years.

Despite the rejected claims, the audit validated GH¢45.4 billion as legitimate obligations, meaning the government is expected to settle those payments, subject to fiscal space and further verification processes.

The remaining portion of the claims is still undergoing further reconciliation and review.

Pressure on public finances

Government arrears to contractors and suppliers have long been a major fiscal challenge in Ghana, often contributing to cash-flow constraints within the private sector and affecting infrastructure development projects.

Economists note that large arrears can distort public finances by creating hidden liabilities that are not fully reflected in annual budgets.

The audit exercise was therefore undertaken to establish the true size and legitimacy of outstanding government payables, particularly as the country works to stabilise its economy and restore fiscal discipline following recent economic challenges.

PAC investigation

By referring the matter to the Public Accounts Committee, Parliament is seeking to ensure accountability and transparency in the management of public funds.

The PAC, which is responsible for examining reports of the Auditor-General and investigating the use of public resources, is expected to scrutinise the findings, summon relevant officials and determine whether any wrongdoing occurred.

Lawmakers say the committee’s work will be critical in identifying the source of the questionable claims and recommending sanctions where necessary.

The referral also comes amid increasing calls for stronger oversight of government expenditure and stricter enforcement of financial management laws.

The revelations highlight persistent weaknesses in public sector procurement, contract management and payment systems.

If confirmed, the alleged irregularities could represent one of the largest disputed arrears claims in Ghana’s recent fiscal history.

The PAC’s investigation is therefore expected to attract significant public attention as Parliament seeks to determine how billions of cedis in claims were processed and whether fraudulent documentation was used in attempts to secure government payments.

The committee is expected to present its findings and recommendations to the House after completing its review within the stipulated three-week period.