The Ghana National Petroleum Corporation (GNPC) has come under intense scrutiny after the Auditor-General’s 2024 report uncovered major financial and procurement irregularities in its operations, raising red flags over the prudent management of over US$768 million in petroleum revenues spent between 2018 and 2023.
According to the audit, GNPC received a total of US$1.6 billion in petroleum revenue within the six-year period. However, almost half of the US$768.35 million was channeled into Level B activities such as capital investments, administrative costs, and corporate social investment (CSI) projects, many of which were either unapproved or poorly implemented.
Unapproved spending amid stalled priority projects
Among the revelations was a GH¢4.9 million payment for the construction of the Royal Golf Club House, a project not captured in GNPC’s budget approved by Parliament. While this unapproved initiative progressed, the report observed that numerous Parliament-endorsed projects stalled due to lack of funds.
The audit, conducted under Sections 13(e) and 16 of the Audit Service Act, 2000 (Act 584), stated:
“We found that the CSI Department delayed project execution due to the late release of funds, causing several contractors to abandon sites. Many projects were left incomplete, not built to approved specifications, or provided with substandard fittings.”
Further, the Auditor-General revealed that GNPC’s procurement processes breached national laws, particularly through the use of restricted tendering without adequate justification. The Head Office failed to comply with Section 38(A) of the Public Procurement Act (PPA), while the CSI Department and GNPC Foundation similarly violated internal procurement policies, the report noted.
Millions wasted on neglected projects
In one example, the GNPC Foundation spent GH¢2 million on projects that quickly deteriorated because they lacked essential ancillary infrastructure to function. The report warned that such practices undermine the core objectives of petroleum revenue management, which is to drive long-term national development rather than fund isolated or poorly executed initiatives.
Recommendations for fiscal discipline and governance reforms
To reverse these worrying trends, the Auditor-General has recommended that all projects submitted for post-budget approval be deferred to the following year’s budget. Also, GNPC should prioritise ongoing projects over unapproved ones.
The Chief Executive Officer must also strictly adhere to PPA guidelines, using restricted tendering only with full justification. The GNPC Board ensures the CSI Department and Foundation actively participate in procurement processes to align with internal and national policies.
The report concludes that GNPC’s management of petroleum resources must improve significantly to support Ghana’s broader economic recovery agenda.
