The Public Accounts Committee (PAC) of Parliament has cleared the Controller and Accountant General’s Department (CAGD) of allegations that it overstated Ghana’s public debt by GH¢138 million in its 2024 financial statements.

The committee explained that the supposed discrepancy arose from the inclusion of debts owed by state-owned enterprises (SOEs) that were not guaranteed by the central government.

Appearing before PAC in Accra on Monday, August 25, the Controller and Accountant General, Akwasi Agyei, clarified that the financial statement had reported a total public debt of GH¢861.4 billion for the whole of government, including SOEs. However, the actual figure for the central government and guaranteed SOEs stood at GH¢711.4 billion — the same figure submitted to Parliament and the Bank of Ghana.

“The figures haven’t changed. What we have in the financial statement is the same after reconciliation. They haven’t impacted the state’s accounts. It was just a few reconciliations we had to do with the auditors,” Mr. Agyei stressed.

Discrepancy explained

PAC Chairperson, Abena Osei Asare, further explained that unguaranteed SOE debts only become part of the government’s debt stock if those enterprises default, hence their treatment did not affect the central government’s official debt figure.

She urged closer collaboration between the CAGD and the Audit Service to ensure timely clarifications and prevent future misunderstandings.

Committee members also cautioned that premature reports of discrepancies could negatively affect Ghana’s international credit ratings, and called for stronger coordination to protect public confidence in official financial reporting.

The Auditor-General’s office admitted that its report had been issued under time pressure but confirmed that subsequent reconciliation validated the Controller’s figures.

“Critical for Ghana’s credibility”

Deputy Minister of Finance, Thomas Nyarko Ampem, welcomed the committee’s conclusion, describing it as vital for Ghana’s fiscal reputation.

“This is a very important conclusion we need to bring to the attention of every Ghanaian, and everybody with an interest in Ghana. It was worrying for an impression to be created that the Controller and Accountant General had overstated Ghana’s public debt.

“The message is clear: there was no overstatement, and the debt figures remain the same,” he stressed.

Weak compliance with GIFMIS

Beyond the debt issue, PAC also raised concerns over weak compliance with the Ghana Integrated Financial Management Information System (GIFMIS) by some state institutions.

In response, Mr. Agyei explained that while all government-funded entities were on GIFMIS, institutions relying on Internally Generated Funds (IGF), donor inflows, and statutory funds often bypassed the system.

He announced plans, backed by the Ministry of Finance, to phase out manual cheques and integrate payments through the Ghana Interbank Payment and Settlement System (GhIPSS) to compel full compliance. A pilot, he said, had already proven successful.