MDA Financial Breaches Rise to GH¢5.27bn in 2025

The Auditor-General has uncovered GH¢5.27 billion in financial irregularities involving Ghana’s Ministries, Departments and Agencies (MDAs) for the 2025 financial year, with tax-related infractions accounting for the majority of the amount.

The figure, contained in the Report of the Auditor-General on the Public Accounts of Ghana -Ministries, Departments and Other Agencies for the year ended December 31, 2025, represents a 156 per cent increase from the GH¢2.06 billion recorded in 2024.

The report indicated that the entire amount is recoverable, meaning government institutions and individuals responsible for the irregularities could be required to refund the money or face surcharge and possible legal action.

According to the Auditor-General, tax irregularities were the biggest contributor to the increase, accounting for GH¢4.8 billion, representing more than 91% of the total irregularities recorded during the period.

The report attributed the tax infractions largely to outstanding tax liabilities identified during a review of debt stocks at the Ghana Revenue Authority’s (GRA) Large Taxpayers Office.

Among the major findings were GH¢3.02 billion in accrued but unpaid taxes owed by ten state institutions as of the 2024 year of assessment.

Auditors also identified GH¢701.8 million in unpaid Value Added Tax (VAT) and related levies owed by 7,970 VAT-registered taxpayers in the Greater Accra Region.

In addition, the report revealed that GH¢8.3 million in Growth and Sustainability Levy (GSL) remained unpaid by 813 companies and institutions.

The Auditor-General also cited Enclave Power Ghana Limited, a Free Zones company, for failing to pay duties and taxes on local sales and services valued at US$19.36 million between October 2024 and June 2025.

Following the findings, the Auditor-General has directed the Commissioner-General of the Ghana Revenue Authority to strengthen supervision, intensify tax recovery measures, and apply sanctions provided under tax laws to recover outstanding amounts.

Beyond tax-related infractions, the report identified GH¢410.7 million in cash irregularities, making it the second-largest category of financial breaches recorded in 2025.

The cash irregularities included unsupported payments, unaccounted revenue, missing payment vouchers, unapproved disbursements, and unretired imprests across several public institutions.

The Ministry of Energy recorded the most significant cash-related irregularity, with auditors flagging GH¢285.8 million involving 34 transactions that were not supported by payment vouchers or relevant documentation.

The Auditor-General has directed the Chief Director of the Ministry of Energy to account for the expenditure or personally refund the amount into the Auditor-General’s Recoveries Account.

The report further identified irregularities involving loans and advances, payroll, procurement, contracts, and rent.

Loans and advances irregularities amounted to GH¢29.3 million, including GH¢10.7 million owed by 596 employees of the Ministry of Health and the Ghana Health Service under the Vehicle Hire-Purchase Scheme.

Payroll irregularities totalled GH¢19.9 million, including GH¢7.5 million paid to four deceased pensioners between February 2019 and March 2026.

The Auditor-General has recommended that the money paid to the deceased pensioners be recovered with interest from their beneficiaries or next of kin.

In procurement and stores management, auditors recorded GH¢1.13 million in irregularities, including advance payments made by health facilities for vehicles that had not been delivered by the end of 2025.

Contract irregularities were valued at GH¢3.35 million, with one notable case involving GH¢2.3 million paid as mobilisation for the supply of a patrol boat for the Fisheries Commission, although the vessel had not been delivered by the end of the year.

The report also recorded GH¢44,940 in rent irregularities, involving unauthorised rental income collected by a former Regional Meteorological Director in the Western Region after renting out official government bungalows without approval.

The Ministry of Finance recorded the highest amount of irregularities among all MDAs, totaling GH¢4,809,329,211, driven mainly by unpaid taxes, VAT, and levies under the Ghana Revenue Authority.

The Ministry of Energy followed with GH¢378.9 million, largely linked to unsupported cash transactions at the ministry level.

The Ministry of Works and Housing recorded GH¢35.6 million, while the Ministry of Health recorded GH¢31.2 million in irregularities.

Other institutions with notable irregularities included the Ministry of Fisheries and Aquaculture Development with GH¢4 million and the Ministry of Food and Agriculture with GH¢3.8 million.

The Auditor-General’s five-year trend analysis shows a steady rise in financial irregularities within MDAs, increasing from GH¢1.08 billion in 2021 to GH¢5.27 billion in 2025, representing more than a fourfold increase over the period.

The report noted that tax irregularities have become the dominant source of financial infractions in the public sector, recording the sharpest increase over the five-year period.

The findings are expected to be referred to Parliament’s Public Accounts Committee (PAC), where heads of affected institutions may be invited to explain the irregularities and outline measures being taken to recover the funds.

The Auditor-General has maintained that the full GH¢5.27 billion is recoverable and has called on relevant authorities to enforce existing laws and strengthen public financial management systems to prevent further losses to the state.