Finance Minister Halts Contractor Payments Pending Comprehensive Audit of Arrears

Ghana’s Finance Minister has announced a temporary suspension of payments to contractors, citing the need for a thorough audit of outstanding arrears. The move, aimed at ensuring accountability and curbing inflated claims, comes amid growing pressure on the government to settle debts owed to contractors across various sectors.

To ensure greater fiscal responsibility and transparency, Ghana‘s Finance Minister, Dr. Cassiel Ato Forson, has declared that no government contractors will be paid until the Auditor General has completed a thorough audit of outstanding arrears.

Speaking at a high-level meeting with Chief Directors from various Ministries, Departments, and Agencies (MDAs), Dr. Forson underscored the importance of conducting an exhaustive review to ensure that taxpayer funds are managed effectively and in accordance with the law.

“I have not paid a single contractor, and I do not intend to do so until the audit is concluded,” he asserted, emphasizing the government’s commitment to eliminating wasteful expenditure.

The audit is set to scrutinize a massive GH¢67 billion in arrears owed across 23 ministries, highlighting the scale of the government’s financial obligations and the complexity of clearing these debts. The Finance Minister‘s directive comes at a time when public sector fiscal management is under intense scrutiny, with calls for more stringent controls over government spending.

The Auditor-General has been given a six-week deadline to complete the review, a timeline that underscores the urgency of the task. The audit will involve a rigorous process of verifying claims, cross-checking the validity of commencement warrants, and determining which obligations are legally due for payment. This process will help ascertain which arrears are legitimate and which might be subject to overstatements or discrepancies.

Dr. Forson made it clear that no payments will be made without the Auditor-General’s affirmative endorsement.

“Not a single pesewa will be paid without confirmation from the Auditor-General,” he warned.

The move has far-reaching implications for contractors, suppliers, and service providers who have been awaiting payments for government projects or services. Many of these businesses have expressed concerns over delayed payments, which have, in some cases, resulted in financial strain. However, Dr. Forson’s commitment to ensuring that all payments are backed by proper verification is a crucial step toward restoring confidence in the public procurement process.

One of the core objectives of the audit is to determine which of the outstanding commitments are due for payment in the current fiscal year, as well as ensuring that payments are authorized according to established protocols.

“This is about safeguarding the public purse and ensuring we are not paying for commitments that are either inflated, invalid, or unauthorised,” Dr. Forson said, highlighting the need for transparency and accountability in the management of public funds.

The Finance Minister also directed Chief Directors to cooperate fully with the Auditor-General, ensuring that all relevant documentation and information are disclosed. This collaboration is key to ensuring that the audit process is thorough, accurate, and effective.

“Full disclosure is critical. The Chief Directors must work hand-in-hand with the Auditor-General to ensure a complete and accurate picture of government financial obligations,” Dr. Forson explained.

The audit process is expected to play a pivotal role in identifying and rectifying any inefficiencies or irregularities in the payment process. It will also provide a clearer picture of the government’s financial health and offer insights into how it can streamline public procurement and reduce the accumulation of unpaid debts. The results of the audit will be critical in guiding future budgetary allocations and ensuring that payments are made in a timely and transparent manner.

In the broader context, this move aligns with the government’s ongoing efforts to address fiscal challenges and improve public sector governance. By taking a firm stance on audit compliance and payment verification, Dr. Forson is sending a strong message that the government is serious about managing public finances with the utmost care.

While contractors may face some delays in receiving payments, the Finance Minister’s action is expected to yield long-term benefits in terms of ensuring that public funds are allocated efficiently and responsibly. The audit is an essential step in the drive toward greater fiscal transparency and accountability, which are critical to sustaining investor confidence and ensuring that government spending is aligned with national development priorities.

The outcome of this comprehensive review could pave the way for more robust financial oversight and a more sustainable approach to managing Ghana’s public debt

Last Updated on April 11, 2025 by samboad