The government owes contractors and suppliers a staggering GHS 67.5 billion, representing 5.2% of Ghana’s GDP, Finance Minister Dr. Ato Forson has revealed. He made this disclosure while presenting the 2025 Budget to Parliament, emphasizing that the road sector alone accounts for GHS 21 billion of the total arrears.
Dr. Forson explained that upon assuming office on January 23, 2025, his ministry was inundated with payment requests from contractors and suppliers across various sectors. In response, the Ministry of Finance formally requested all Ministries, Departments, and Agencies (MDAs) on January 28, 2025, to submit data on outstanding arrears and claims for validation. Following a special hearing, the ministry confirmed that the government owes GHS 49.2 billion in interim payments for invoices submitted by MDAs and GHS 18.3 billion in bank transfer advice at the Controller and Accountant-General’s Department.
Dr. Forson also revealed that the Bank of Ghana is seeking a GHS 53 billion bailout to address its negative equity challenge.
Further complicating the situation, the finance minister revealed that MDAs have awarded contracts worth at least GHS 194 billion—equivalent to 16.5% of GDP—as of the end of 2024. The road sector alone accounts for GHS 100 billion of these commitments.
Shockingly, many of these contracts were awarded without commencement certificates and proper authorization, a blatant violation of the Public Financial Management Act (Act 921). Dr. Forson assured Parliament that all arrears would be thoroughly audited to ensure value for money before any payments are made.
Dr. Forson assured Parliament that the government is committed to fiscal discipline and transparency.
Ghana|Atinkaonline.com|Ebenezer Madugu
