Ghana Deputy Finance Minister: Internal Controls Crucial for Public Funds

• Ghana's Deputy Finance Minister, Thomas Nyarko Ampem, called for stronger internal controls in public institutions to prevent financial irregularities and safeguard public funds.
• He highlighted a 62.9% reduction in financial irregularities, from GH¢20.72 billion in 2024 to GH¢7.69 billion in 2025, according to the Auditor-General's reports.
• An audit of legacy arrears revealed GH¢8.1 billion in rejected claims out of GH¢68.7 billion, due to issues like inadequate documentation and falsified receipts.
• Ampem urged internal auditors to enhance scrutiny of procurement, payroll, and public investments, utilizing data analytics and digital tools.
• He stressed that institutional heads must empower auditors, protect their independence, and promptly act on audit recommendations to support Ghana's "New Economy agenda."

The Deputy Minister stressed that the fundamental lesson from this Ghana legacy arrears audit is the superior efficacy of preventing improper payments upfront, rather than expending considerable time and resources attempting to recover them post-disbursement.

Ghana's Deputy Minister for Finance, Thomas Nyarko Ampem, recently underscored the critical need for enhanced internal controls across all public sector institutions. Speaking at the 25th anniversary celebration of the Institute of Internal Auditors Ghana, Mr. Ampem articulated a vision where robust internal auditing serves as a proactive mechanism to prevent financial irregularities and diligently safeguard public funds. His address, delivered on October 17, 2026, on behalf of Minister for Finance Dr. Cassiel Ato Forson, highlighted that effective auditing should transcend merely identifying weaknesses after they occur, instead focusing on pre-emptive measures to avert financial losses.

The Deputy Minister emphasized that Ghana's ambitious development objectives, encapsulated within the government's "New Economy agenda," necessitate substantial investments in critical areas such as infrastructure, skills development, technological advancement, and productive enterprises. Consequently, the protection of the nation's finite public resources from waste and mismanagement becomes paramount. He asserted that it is contradictory to strive for resource mobilization for development while simultaneously permitting these resources to dissipate through inadequate financial oversight. This strategic imperative forms the bedrock of Ghana financial irregularities prevention efforts, aiming to ensure every cedi contributes to national progress.

To illustrate the ongoing challenges and the progress made, Mr. Ampem referenced compelling statistics from the 2025 Auditor-General's reports Ghana. These reports revealed a significant reduction in financial irregularities across five distinct categories of public institutions, with the total sum decreasing from approximately GH¢20.72 billion in 2024 to GH¢7.69 billion in 2025. This represents a substantial 62.9 percent decline, which the Deputy Minister acknowledged as a positive step. However, he promptly cautioned that the remaining GH¢7.69 billion in irregularities serves as a stark reminder that the task of strengthening accountability and improving public financial management is far from complete.

Further underscoring the importance of stringent controls, Mr. Ampem detailed findings from a comprehensive audit of the government's legacy arrears and payables. Out of a staggering GH¢68.7 billion in claims submitted for verification, a significant GH¢8.1 billion was ultimately rejected. The reasons for these rejections were varied but consistently pointed to systemic weaknesses, including inadequate supporting documentation, the submission of duplicate claims, instances of falsified receipts, and claims made for work that was never actually performed. The Deputy Minister stressed that the fundamental lesson from this Ghana legacy arrears audit is the superior efficacy of preventing improper payments upfront, rather than expending considerable time and resources attempting to recover them post-disbursement.

In light of these findings, Mr. Ampem issued a clear directive to internal auditors, urging them to intensify their scrutiny across key operational areas. This includes a heightened focus on procurement processes, the integrity of payroll systems, and the oversight of major public investments. The objective is to proactively identify potential risks and thereby prevent the misuse of public funds before it occurs. He advocated for the strategic adoption of modern tools such as data analytics and digital technologies, alongside the implementation of continuous risk assessment methodologies, as crucial components of Ghana public financial management reforms.

The Deputy Minister further clarified that the successful integration of digitalization must be underpinned by a foundation of professional competence, ensuring the institutional independence of auditors, and fostering robust management accountability. Beyond the auditors themselves, Mr. Ampem called upon the heads of public institutions to actively empower their internal audit functions, safeguard their independence from undue influence, and, crucially, act promptly and decisively on audit recommendations. He warned against the detrimental cycle of allowing the same weaknesses to recur, emphasizing that the ultimate success of the government’s "New Economy agenda" hinges not merely on the mobilization of resources, but profoundly on how effectively those resources are protected and judiciously utilized. He concluded by stating that a "New Economy" cannot be built upon "old habits of waste, weak controls and avoidable financial losses."

Lawyers and compliance officers advising public sector entities or private companies engaged with the Ghanaian government must ensure robust internal controls and meticulous documentation for all financial transactions and claims. The government's focus on preventing financial irregularities, as evidenced by the rejection of billions in legacy arrears, signals increased scrutiny on procurement, payroll, and public investments, necessitating proactive compliance reviews to mitigate risks.

Source: Original reporting via Joy Business