Ghana’s efforts to conclude its ongoing International Monetary Fund (IMF) program on a strong note have been marked by a renewed push for fiscal discipline, but growing concerns over hidden arrears are threatening to cloud the country’s economic outlook, policy analyst Bright Simons has said.
According to Simons, while the Finance Ministry has maintained a reputation for being “ruthless and hyper-efficient” in managing the IMF program, recent revelations from the Auditor-General’s interim audit suggest that a substantial portion of government arrears remains unaccounted for—raising questions about fiscal transparency and the credibility of official figures.
IMF’s Transparency Demands
Following an IMF staff-level agreement with Ghana on October 10, 2024, the country was set to receive $385 million by the end of December, pending board approval—a formality in most cases.
However, IMF officials have reportedly emphasized the need for greater transparency regarding the government’s arrears before completing the disbursement process.
To that end, the Auditor-General recently released an interim audit report on outstanding fiscal arrears as of December 31, 2024, providing the public with a rare glimpse into the scale of unpaid government obligations.
GHS 90 Billion in Captured Arrears
The report shows that Ghana’s captured arrears total approximately GHS 90 billion ($8.2 billion)—equivalent to nearly 10 percent of GDP.
More than two-thirds of the arrears, Simons noted, relate to road infrastructure projects.
The Auditor-General has rejected about $1.1 billion of claims from various companies, directing them to appeal, while another $7.1 billion remains in limbo pending further verification. Only $100 million in arrears under the government’s flagship Agenda 111 hospital project were captured in the audit.
About 25 companies account for nearly $5 billion of the total captured arrears, out of roughly 3,000 firms listed.
Chinese contractors were among those hit hardest by rejections, with China International Water & Electric seeing $230 million of its claims dismissed. Simons hinted that this could be linked to ongoing delays in Ghana’s debt relief negotiations with China, despite recent diplomatic engagements.
Odd and Controversial Claims
Some of the arrears appear questionable.
Waste management company Zoomlion reportedly claimed GHS 400 million for the “evacuation of old-age refuse” and GHS 148 million for “beautification” projects in regional capitals.
Meanwhile, arrears connected to the Ghana Card project have reached nearly $300 million, owed to the private partner managing the system.
The company with the single largest pending commitment claim, Jabass 69, reportedly seeks about $770 million for regravelling the Wiaga–Kadema–Naga road, a relatively obscure route.
Another company, Afona Ltd, has a $680 million claim for similar works on the Missiga–Garu–Sissie road. Curiously, other firms, including Hinra and Razaam, have also submitted smaller claims for the same roads.
Broader Governance Concerns
Simons warned that the arrears situation—especially given that several claims remain uncaptured—undermines the credibility of Ghana’s public debt management.
The 2024 IMF Governance Diagnostic also linked the issue to broader governance lapses, including weak project prioritization, opaque procurement practices, and political patronage-driven spending.
“The government has yet to terminate or repudiate several projects that a traditional austerity program would have required,” Simons noted, adding that arrears have continued to accumulate in 2025.
Next Steps
While the Auditor-General’s report is still interim and contains no official commentary, Simons said think tanks and civil society organizations plan to file Right-to-Information (RTI) requests to clarify discrepancies—particularly around sole-sourced contracts and unverified claims.
“There is a lot more to say,” he concluded, “but for now we will keep chasing the data and official explanations and share our analysis with the public.”
Source :www.kumasimail.com
