UK-based Ghanaian student Alhassan Abass Sagoe has revealed the financial irregularities in the Ghanaian public institutions: causes, effects, and recommendations. Over the years, the Auditor General’s reports have revealed persistent financial irregularities in almost all public institutions in Ghana.
These irregularities include tax irregularities, procurement violations, contracts, payroll, assets, and store management. All these take place amidst the Public Financial Management Act (ACT 921, 2016), the Public Procurement Act, 2003 (Act 663) as amended with (Act 914), and other financial laws of Ghana.
The Internal Audit Agency Act, 2003 (ACT 658), also empowers the agency to conduct regular audits in public institutions in Ghana.
For instance, the Auditor-General’s reports from 2019 to 2023 identified over GH¢10.2 billion lost due to these irregularities.
Financial irregularities, however, have decreased from GH¢16.57 billion in 2022 to GH¢11.17 billion in 2023, according to the 2024 Auditor-General’s report on Ghana’s state finances.
The availability of the aforementioned acts, the existence of internal auditors in practically all government entities, and the frequent audits conducted by the Audit Service and Internal Audit Agency should have made this possible.
From little mistakes to major cases of fraud and corruption, the departures from accepted financial norms, regulations, and ethical standards gradually erode public confidence and obstruct efficient governance and progress.
In addition to disregarding the auditor general’s recommendations, breaking the Public Procurement Act, and having ineffective internal auditors, these wrongdoings also include the Public Accounts Committee’s inability to sufficiently examine audit reports, look into or hold those in charge accountable, and politicize public institutions, which permits financial misconduct to go unchecked.
In addition to impairing the efficiency of public institutions’ operations, these dishonest practices also impede the growth of the communities in which they operate, have a detrimental influence on economic expansion, and erode investor confidence
The author believes that improving the enforcement of public financial management (PFM) laws is essential to improving PFM and reducing irregularities.
It also gives the auditor general more authority to impose sanctions on government institutions, which can help deter future irregularities.
Long-term improvements in public financial management also depend on strengthening internal audit systems, improving tax collection procedures, promoting transparency and accountability, and addressing the underlying systemic issues, such as weak enforcement and a lack of robust accounting systems.
Furthermore, the implementation of stringent regulatory measures, compliance with financial standards, and strengthening of internal control systems.