Auditor-General Exposes GHS138.91 Billion Overstatement in Ghana’s Public Debt

The Auditor-General has uncovered significant misstatements in Ghana’s 2024 Whole-of-Government Accounts (WGA), including an overstatement of the country’s public debt by GH¢138.91 billion, raising concerns about fiscal transparency and accountability.

The revelations were contained in the Report of the Auditor-General on the Public Accounts of Ghana for the Year Ended 31 December 2024, which followed an independent audit of the government’s consolidated accounts prepared by the Controller and Accountant-General’s Department (CAGD), in line with the Public Financial Management Act, 2016 (Act 921).

According to the report, the debt figure captured in the WGA was significantly inflated, with the Auditor-General recommending that the CAGD collaborate with the Ministry of Finance to conduct a comprehensive reconciliation to address both overstatements and omissions.

The audit also revealed that GH¢74.24 billion recorded as provisions for investments should have been classified as impairment losses, in accordance with International Public Sector Accounting Standard (IPSAS) 41. The Auditor-General urged the CAGD to strengthen its quality assurance processes during consolidation to prevent such errors in the future.

Further concerns were raised over revenue reporting. Receivables for assessed but uncollected income tax and Value Added Tax (VAT) as of December 31, 2024, were not recognised in the accounts, contrary to IPSAS 23 requirements. The Auditor-General recommended closer coordination between the CAGD, the Ghana Revenue Authority, and the Ministry of Finance to ensure revenue recognition is aligned with the accrual basis.

The report also found that impairment tests had not been conducted on non-financial assets, as required under IPSAS 21 and IPSAS 26. The Auditor-General called for the establishment of a formal process for regular asset assessments.

Inconsistencies in Inter-Company Account balances were also flagged. Instead of netting off to zero after consolidation, balances stood at GH¢7.99 billion at the beginning of the year and GH¢8.55 billion by year-end, raising questions about accuracy in reconciliation. The report called for urgent investigation and correction.

The audit further highlighted incomplete transaction processing by covered entities through the Ghana Integrated Financial Management Information System (GIFMIS). It recommended stricter enforcement of the Public Financial Management Act provisions, supported by system upgrades, capacity building, and sanctions for persistent non-compliance.

On public investments, the Auditor-General observed that disinvestments amounting to GH¢10.30 billion and new investments of GH¢19.25 billion lacked adequate narrative and note disclosures. This omission, the report noted, deprived the public of critical information on the rationale, implications, and expected returns from such investments.

The Auditor-General concluded that while the audit provided an independent opinion on the government’s financial statements, the misstatements and weaknesses identified required urgent attention to strengthen fiscal reporting and enhance accountability in the management of public resources.