State-Owned Enterprises (SOEs) recorded approximately GH¢18.6 billion in financial management irregularities, raising concerns over the financial risks their operations pose to government, according to a new IMF Technical Assistance Report.

The report, titled “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation”, draws on findings contained in the 2024 Report of the Auditor-General.

Outstanding debtors and loans accounted for the largest portion of the irregularities at GH¢12.54 billion, representing overdue receivables and funds that remain locked up.

Cash irregularities amounted to GH¢4.58 billion and included unsupported payments and revenues that were not properly accounted for.

The Auditor-General also identified contract irregularities of about GH¢871.82 million, procurement irregularities of GH¢335.27 million, payroll irregularities of GH¢191.6 million, tax irregularities of GH¢77.06 million and stores irregularities of GH¢4.5 million.

The IMF warned that persistent financial weaknesses among strategically important SOEs could increase government’s fiscal exposure, particularly where entities carry significant liabilities or continue to record losses.

It has consequently called for stronger financial oversight and governance, including better coordination between the Ministry of Finance and the State Interests and Governance Authority and improved monitoring of SOE investments.