Energy Ministry tops 2024 financial irregularities with GH¢15.8bn in breaches
By Praisebell Rosemond Larbi
The Ministry of Energy has emerged as the single largest source of financial irregularities in the public sector for 2024, accounting for a staggering GHS15.83 billion, equivalent to 86 percent of all public sector financial infractions recorded for the year.
The revelation, contained in the latest Auditor-General’s Report covering the fiscal year ending December 31, 2024, raises serious concerns about governance, fiscal discipline, and procurement practices in one of the country’s most critical and heavily funded sectors.
Out of a total of GHS18.42 billion in irregularities uncovered across Ministries, Departments, and Agencies (MDAs), the Ministry of Energy stood out significantly, with the report attributing the bulk of these breaches to contract irregularities, procurement violations, store management lapses, and unremitted taxes.
The findings come at a time when Ghana is under intense scrutiny from international partners, including the International Monetary Fund (IMF), as it seeks to meet performance benchmarks under its ongoing bailout program and rebuild macroeconomic stability.
At the heart of the Energy Ministry’s infractions is the Electricity Company of Ghana (ECG).
According to the report, ECG significantly under-declared revenue by GHS2.95 billion, having collected GHS11.59 billion but reported only GHS8.64 billion to the Ministry of Energy and other oversight bodies.
Further, ECG is cited for failing to remit over GHS70.9 million in taxes to the Ghana Revenue Authority and making questionable financial decisions, including paying GHS75 million to Hubtel Limited under a revenue collection contract that had no signed agreement.
The company also engaged in inflated procurement processes, leading to an estimated USD17 million in financial losses.
“We recommended strict implementation of our recommendations to ensure financial discipline in the management of public resources,” the Auditor-General stated.
The report categorizes a majority of the GHS15.8 billion irregularities within the Energy Ministry as recoverable, suggesting they are primarily made up of debts, outstanding receivables, and other obligations that can be retrieved.
However, the report also strongly emphasized the systemic weaknesses and poor enforcement of financial regulations that allow such breaches to persist year after year.
Among the laws repeatedly violated are the Public Financial Management Act (Act 921), Public Procurement Act (Act 663), and the Audit Service Act (Act 584). Many MDAs, including those under the Energy Ministry, were found to have non-functional Audit Committees, weak internal controls, and poor oversight from their governing boards.
Governance experts warn that these institutional weaknesses undermine public trust and erode the effectiveness of fiscal consolidation efforts, especially when such massive amounts are mismanaged by a single ministry.
The Energy Ministry’s irregularities dwarf those of all other MDAs combined and are likely to shape the government’s mid-year budget review, due on July 24, 2025. Analysts believe the findings could lead to increased parliamentary oversight, revised budgetary allocations, and possibly targeted reforms within the energy sector.
The Auditor-General has recommended urgent reforms, including the full digitization of procurement through GHANEPS, stricter internal audits, and the enforcement of sanctions under existing financial laws.
