Auditor-General rejects GH¢3.5bn in arrears over irregular contracts – Ato Forson

Finance Minister Dr. Cassiel Ato Forson has revealed that the Auditor-General has disallowed GH¢3.5 billion out of the GH¢67 billion arrears inherited by the current government, citing violations and irregularities in contract awards, particularly within the road sector.

Speaking on the Citi Breakfast Show on Friday, July 25, Dr. Forson disclosed that a significant chunk of the arrears, approximately GH¢22 billion, was linked to road infrastructure projects, many of which were initiated without proper approvals during the previous administration.

“Out of the GH¢67 billion, GH¢22 billion happens to be road-related. The Auditor-General has validated about GH¢23 billion, another GH¢23 billion is still awaiting further validations, and he has rejected about GH¢3.5 billion and says we shouldn’t even try to pay it,” Dr. Forson stated.

According to the Finance Minister, these rejections stem from improper contract processes and the absence of commencement authorisations, especially under the Ministry of Roads in the previous New Patriotic Party (NPP) government, pointing out that such practices not only breach Ghana’s financial laws but have also deepened the country’s fiscal stress.

He linked the situation to the broader issue of weak commitment control systems and unchecked spending, which he said were the hallmarks of the economic conditions left behind by the previous government.

He further explained that the country was saddled not only with GH¢67 billion in arrears but also contract commitments totalling over GH¢194 billion, mostly awarded without regard for the financial capacity of the state or the laws governing public procurement and fiscal discipline.