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Introduction
While the living struggle with the rising cost of utilities and taxes, the ghost of a retired Supreme Court judge continues to draw a multi-million cedi pension. Imagine a national bucket intended to collect a country’s wealth to build its schools and hospitals, but riddled with holes so wide that GH¢5.2 billion simply vanished into a void of administrative negligence in a single year. These issues and several irregularities are evidently listed in the 2025 Auditor-General’s report.
This explainer will be done in parts, as the department has released several reports. This part will focus on the Public Accounts of Ghana’s Ministries, Departments, and other Agencies (MDAs). The report reveals a massive surge in financial infractions.
Most critical finding
The most critical finding in the report is that total financial irregularities skyrocketed by 256.3% in a single year. In 2024, the reported infractions totalled GH¢2.1 billion. By the end of 2025, this figure reached GH¢5.26 billion, more than double the 2024 figure. The Auditor-General attributes this unprecedented spike almost entirely to a failure in tax administration and collection.
1. The Tax Crisis: State institutions as the biggest defaulters
Tax irregularities account for GH¢4.8 billion, which is 91.2% of the total financial impact reported. While thousands of private citizens and companies owe taxes, the report highlights that ten state institutions are responsible for GH¢3 billion in accrued debt. This can be found on Page 31.
The top three debtors identified in the report are:
- Electricity Company Limited (ECG): Owes GH¢1,416,372,386.
- Ghana Airports Company Limited: Owes GH¢430,375,394.
- Produce Buying Co. Ltd.: Owes GH¢330,452,621.
Additionally, the Ghana Revenue Authority (GRA) failed to collect GH¢701,722,994 in VAT from nearly 8,000 registered taxpayers and GH¢650,742,746 in overdue income taxes from over 17,000 individuals and entities. Page 15
2. Missing vouchers at the Ministry of Energy
Under the category of Cash Irregularities, which totalled GH¢410,699,645, the most significant case involves the Ministry of Energy. Management at the Ministry could not provide 34 payment vouchers for transactions totalling GH¢285,761,789.32. Page 292.
These payments were not recorded in the cash book, and there was no supporting documentation to prove they were used for official purposes. The Auditor-General has recommended that the total amount be recovered from the director of finance and the Chief Treasury Officer personally if they cannot account for it.
3. “Ghost” Expenses: Paying the deceased and buying non-existent boats
The report highlights several instances of administrative negligence:
Pension Payments to the Dead: Payments of unearned salaries to staff who vacated posts, were on leave without pay, or resigned, totalling GH¢19,924,710. Out of that, the Pensions Directorate of the Controller and the Accountant-General’s Department paid GH¢7,494,975.34 to four deceased pensioners over seven years (February 2019 to March 2026). One retired Supreme Court judge received over GH¢3.3 million in unearned pension starting a month after he died in 2019. Page 84
The Unsupplied Patrol Boat: The Ministry of Fisheries and Aquaculture Development paid GH¢2,302,905 (a 15% contract sum) for a patrol boat that was never delivered. Management claimed the payment was for the “design.” Still, according to the Auditor-General’s report, the Chief of Naval Staff issued a disclaimer stating he could not verify the boat’s authenticity without a physical inspection. Page 305.
4. Systemic weaknesses and recommendations
The report found that these irregularities represent direct losses to the state due to public officers’ lack of probity or disregard for existing PFM frameworks. Key systemic issues include the following:
Conclusion
The report emphasises that all identified amounts are recoverable. The Auditor-General has stated his intent to investigate these matters further, disallow illegal expenditures, and surcharge the responsible officials to recover the funds for the state.
