State-Owned Enterprises (SOEs) have recorded approximately GH¢18.6 billion in financial management irregularities, according to a new International Monetary Fund (IMF) Technical Assistance Report that raises fresh concerns about governance and fiscal risks posed by Ghana’s public institutions.
The findings, referenced from the 2024 Report of the Auditor-General, reveal widespread weaknesses across SOE financial controls, with outstanding debtors and loans accounting for the largest share at GH¢12.54 billion . These represent overdue receivables and funds locked up in uncollected debts, tying up resources that could otherwise support operations.
Cash irregularities totalled GH¢4.58 billion and included unsupported payments and revenues that were not properly accounted for . The scale of cash-related breaches marks a dramatic surge from previous years, driven largely by the Electricity Company of Ghana (ECG), which alone accounted for GH¢2.95 billion in under-declared revenue and GH¢1.29 billion in undisbursed funds owed to SOEs and Independent Power Producers .
Additional irregularities identified include GH¢871.82 million in contract-related breaches, GH¢335.27 million in procurement irregularities, GH¢191.6 million in payroll irregularities, GH¢77.06 million in tax irregularities, and GH¢4.5 million in stores irregularities .
Mounting Fiscal Exposure
The IMF report, titled “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation,” warns that persistent financial weaknesses in strategically important SOEs ultimately increase government’s fiscal exposure. SOE liabilities have risen sharply from GH¢35 billion in 2015 to GH¢282 billion in 2024, equivalent to approximately 25 percent of Ghana’s GDP .
The energy and roads construction sectors were identified as having particularly significant financial and procurement weaknesses, with more than 15 percent of payables and 6.4 percent of procurement commitments found to be in breach of public financial management regulations .
ECG Procurement Breaches
The Electricity Company of Ghana features prominently in the report. A performance audit by the Ghana Audit Service found that ECG purchased electricity meters valued at approximately US$145 million through 50 contracts without complying with the Public Procurement Act . The contracts covered 862,750 meters and accessories, with the Auditor-General concluding that ECG failed to follow prescribed procurement requirements .
The IMF also highlighted unsolicited “take-or-pay” Power Purchase Agreements, under which payment obligations arise even when contracted electricity is not utilised. These arrangements contributed to generation capacity exceeding actual national demand, creating financial obligations that continue to pressure the energy sector and public finances .
Ghana’s energy sector debt has become a systemic threat to macroeconomic stability. As of late 2025, the sector was burdened by a $5.6 billion debt overhang, with ECG alone accounting for over $4.2 billion in arrears owed to the value chain . The legacy of emergency power procurement between 2013 and 2016, when numerous take-or-pay PPAs were signed to resolve chronic shortages, created excess capacity that consumes more national revenue than the combined investment in roads, hospitals, and schools .
COCOBOD Contract Concerns
The Ghana Cocoa Board (COCOBOD) was similarly cited over major weaknesses in procurement and project management. An audit referenced in the report found that 87 percent of contracts under COCOBOD’s cocoa roads investment portfolio were directly awarded without competitive tendering .
The IMF further identified weaknesses in project costing and contract management, including significant cost overruns, which contributed to additional financial pressures within the cocoa sector . COCOBOD, along with ECG and the Volta River Authority, accounts for the largest share of aggregate SOE liabilities and carries some of the greatest potential fiscal risks for the state .
Governance and Political Appointments
The report also raises concerns about the politicisation of SOE board appointments. While Ghana’s legal framework provides for merit-based appointments, the selection of boards for major state-owned enterprises remains highly centralised, with significant influence resting with the Presidency .
The IMF noted that active politicians, Cabinet ministers, Members of Parliament, and prominent party officials continue to occupy board positions, including leadership roles. The Ghana Ports and Harbours Authority was cited as an example, with its ten-member board chaired by the national chairman of the governing party .
“Compared with OECD norms, which caution against active politicians serving on SOE boards and emphasize independent, professional majorities, this represents a significant divergence,” the report stated .
IMF Recommendations
The IMF is advocating stronger financial oversight, improved governance, and closer monitoring of SOE-related fiscal risks. Among its recommendations are stronger board appointment practices, better coordination between the Ministry of Finance and the State Interests and Governance Authority (SIGA), and improved oversight of investments undertaken by state-owned enterprises .
The findings come as Ghana continues to grapple with fiscal risks associated with its SOEs, particularly entities with significant liabilities and persistent losses in the energy and commodity sectors. The IMF has previously identified SOEs and quasi-fiscal activities outside central government as among the key risks to Ghana’s economic stability following the country’s exit from its US$3 billion loan-supported programme in May 2026 .
The government has signalled plans to deepen SOE reforms as part of efforts to consolidate economic stability, shifting from crisis-driven measures to structural reforms aimed at improving efficiency and governance of key public institutions .
