Ghana continues to lose significant resources due to financial irregularities at the Ministries, Departments, and Agencies of government causing a very slow-paced development in the country.
Although the cost of financial irregularities has reduced, the current amounts, experts say are still significantly high.
According to policy think-tank IMANI Africa, the financial irregularities the country recorded at the Ministries, Departments, and Agencies (MDAs) between 2021 and 2023 is estimated at GH¢4.89 billion. This implies that for the two-year period, financial irregularities by MDAs alone cost the nation GH¢2.45 billion each year.
The two-year period is a slight improvement compared to the 5-year period between 2015 and 2020 when the total financial irregularities amounted to GH¢ 13.94 billion. The average annual loss for the period is estimated at GH¢ 2.79 billion.
The total irregularities by the MDAs between 2021 and 2023, IMANI says is estimated to be about 10 times the total budget of the Livelihood Empowerment Against Poverty (LEAP) Programme in 2023. The comparison of the cost of irregularities to the cost of LEAP underscores the scale of the problem and how the programme that provides critical financial aid to about 344,000 households made up of about 1.5 million people could be enhanced if MDAs are financially prudent.
Despite the drop in the leakages over the previous five-year period, tax-related irregularities are worsening and threatening the country’s fiscal health and ability to deliver essential services.
The revelation comes ahead of IMANI Africa’s launch of the Third Fiscal Recklessness Index (FRI). The third edition is an assessment of the fiscal recklessness of MDAs between 2021 and 2023.
The index IMANI says, “critically analyses the implications of political parties’ manifestos for fiscal discipline” and also “provides some recommendations on how to improve institutional effectiveness in the public financial management system.”
The launch of the third edition comes at a time when the country is preparing for the crucial 2024 General Elections. Ghana has historically faced fiscal slippages before and after election cycles.
IMANI seeks to advocate for political parties to move beyond rhetoric in their manifestos and embrace tangible reforms. The launch of the latest report is set to take place on Wednesday, October 23, at the Tang Palace hotel.
