The Ghanaian government has announced that all outstanding arrears owed to contractors and suppliers will undergo a thorough audit before payments are made. According to Finance Minister Dr. Cassiel Ato Forson, this measure aims to ensure value for money, prevent fraudulent claims, and bring fiscal discipline to the country’s finances.
During the 2025 Budget Statement, Dr. Forson disclosed that Ghana’s total central government arrears/payables amounted to GH¢67.5 billion, representing 5.2% of GDP, with the road sector alone accounting for GH¢21 billion. He emphasized that the government would not rush to settle these debts without a proper audit to prevent unnecessary financial losses.
“Mr. Speaker, as part of measures to address these mounting accumulated arrears/payables, we have commissioned an audit of these arrears/payables and guarantee value for money before payment,” Dr. Forson stated.
Beyond these arrears, he further revealed that government Ministries, Departments, and Agencies (MDAs) had awarded contracts totaling GH¢194 billion, accounting for 16.5% of GDP. A significant portion of these contracts, particularly in the road sector (over GH¢100 billion), were issued without proper authorization, budgetary allocation, or commencement certificates, violating the Public Financial Management Act, 2016 (Act 921).
Earlier this year, he indicated in a post on his X (formerly Twitter) account that no contractor had been paid since he assumed office, as the government was still reviewing all payment requests. “Friends, since I took office, no contractor including Kennedy Agyapong has been paid a pesewa. We are conducting a comprehensive review of all contracts and payment requests to verify their legitimacy. Please disregard any claims suggesting otherwise,” he stated. This reinforces the government’s stance that all payments must undergo strict verification before disbursement.
Dr. Forson stressed that the government’s decision to audit all arrears before payment is a necessary step to curb reckless spending and financial mismanagement. While this policy aims to improve transparency and fiscal discipline, it is likely to delay payments to contractors and suppliers, potentially affecting ongoing projects and business operations.
