The Ministry of Finance has approved GH¢45.4 billion for payment to contractors and suppliers following a large-scale forensic audit that exposed widespread irregularities, including duplicate payments and claims for unexecuted projects.
The audit, which reviewed a staggering GH¢68.7 billion in outstanding claims, ultimately rejected GH¢8.1 billion worth of submissions and placed another GH¢13.27 billion under further investigation due to missing documentation.
The details were laid before Parliament on Tuesday, March 10, by Deputy Finance Minister Thomas Nyarko Ampem, who spoke on behalf of the Finance Minister, Cassiel Ato Forson. He explained that the comprehensive validation exercise was a collaborative effort between the Ghana Audit Service and two renowned external audit firms, Ernst & Young (EY) and PricewaterhouseCoopers (PwC).
A Deep Dive into the Debt Stock
Mr. Nyarko Ampem revealed that the claims presented to the government were a mix of Interim Payment Certificates (IPCs), invoices, and bank transfer advice documents related to advance payments owed to contractors and suppliers.
The breakdown of the submitted claims showed that:
· Outstanding IPCs and invoices accounted for GH¢5.5 billion.
· Bank transfer advices represented the bulk of the claims, totalling GH¢18.3 billion.
The Verdict: Approved, Rejected, and Pending
Following the meticulous verification process, the claims were categorized into three distinct groups:
- Approved for Payment: A total of GH¢45.4 billion was confirmed as legitimate and cleared for payment.
- Rejected Claims: Auditors disqualified GH¢8.08 billion worth of claims due to multiple red flags.
- Pending Further Verification: Claims amounting to GH¢13.27 billion were set aside for additional scrutiny due to incomplete documentation.
Why GH¢8 Billion Was Rejected
The Deputy Finance Minister provided a stark account of the irregularities that led to the rejection of the claims. He listed the primary reasons for disqualification as:
· Lack of supporting documents
· Duplicate submissions for the same work or supply
· Exaggerated payment amounts
· Evidence that some payments had already been made
· Falsified receipt confirmations
· Claims filed for projects that had not been executed
The scale of the rejected claims highlights significant lapses in oversight and the critical role of forensic auditing in safeguarding the public purse.
Audit Summary at a Glance:
· Total claims reviewed: GH¢68.77 billion
· Approved for payment: GH¢45.4 billion
· Rejected claims: GH¢8.08 billion
· Claims pending further verification: GH¢13.27 billion
The audit, conducted in partnership with Ernst & Young and PricewaterhouseCoopers, marks a significant step in the government’s efforts to sanitize the country’s debt payment process and ensure that only verified and legitimate claims are honoured.
