7,970 VAT Defaulters, 813 Levy Dodgers, Gh¢5.27bn At Risk
By Stanley Asor
Ghana’s Auditor-General has uncovered GH¢5.27 billion in financial irregularities across the country’s Ministries, Departments and Agencies in 2025, a 156 percent increase over the previous year, according to the annual report on public accounts released this week.
The report, which covers the year ended Dec. 31, 2025, states that the entire amount is recoverable under existing laws. The Auditor-General has directed that institutions and individuals responsible for the infractions be made to account for the funds or face surcharges and legal action.
Financial irregularities rose sharply from GH¢2.06 billion in 2024 to GH¢5.27 billion in 2025, representing a 156 percent increase. While the report records the significant jump, it also states that the entire amount is recoverable, with the Auditor-General issuing a series of directives aimed at recovering the outstanding sums.
The increase was driven overwhelmingly by tax irregularities, which amounted to GH¢4.8 billion, accounting for more than 91 percent of the total amount flagged. The report attributes this largely to outstanding tax liabilities identified during a review of debt stocks at the Ghana Revenue Authority’s Large Taxpayers Office.
Among the key findings were GH¢3.02 billion in accrued but unpaid taxes owed by ten state institutions as of the 2024 year of assessment; GH¢701.8 million in unpaid Value Added Tax and related levies owed by 7,970 VAT-registered taxpayers in the Greater Accra Region; and GH¢8.3 million in unpaid Growth and Sustainability Levy owed by 813 companies and institutions.
In another case, Enclave Power Ghana Limited, a Free Zones company, was cited for failing to pay duties and taxes on local sales and services worth US$19.36 million between October 2024 and June 2025.
To facilitate recovery, the Auditor-General directed the Commissioner-General of the Ghana Revenue Authority to strengthen supervision, intensify tax recovery efforts, and apply the sanctions provided under tax laws.
Beyond tax-related infractions, the report identified GH¢410.7 million in cash irregularities, making it the second-largest category. These comprised unsupported payments, unaccounted revenue, missing payment vouchers, unapproved disbursements and unretired imprests across several public institutions.
The largest single cash irregularity involved the Ministry of Energy, where auditors found GH¢285.8 million relating to 34 transactions that were not supported by payment vouchers or any relevant documentation. The Auditor-General directed the Ministry’s Chief Director to account for the expenditure or personally refund the amount into the Auditor-General’s Recoveries Account.
The report also identified weaknesses in other areas of public financial management:
Loan and advances irregularities totalled GH¢29.3 million, including GH¢10.7 million owed by 596 employees of the Ministry of Health and the Ghana Health Service under the Vehicle Hire-Purchase Scheme.
Payroll irregularities amounted to GH¢19.9 million, including GH¢7.5 million paid to four deceased pensioners between February 2019 and March 2026. The Auditor-General recommended that the money be recovered with interest from the beneficiaries’ next of kin.
Procurement and stores management irregularities stood at GH¢1.13 million, including advance payments made by health facilities for vehicles that had not been delivered by the end of 2025.
Contract irregularities totalled GH¢3.35 million, including GH¢2.3 million paid as mobilisation for the supply of a patrol boat to the Fisheries Commission, although the vessel had not been delivered by year-end.
The report also recorded rent irregularities of GH¢44,940, including unauthorised rental income collected by a former Regional Meteorological Director in the Western Region after renting out official government bungalows without approval.
By institution, the Ministry of Finance recorded the largest irregularities at GH¢4,809,329,211, driven almost entirely by unpaid taxes, VAT and levies under the Ghana Revenue Authority. This represented more than 91 percent of the GH¢5.27 billion flagged across all MDAs.
The Ministry of Energy followed with GH¢378,903,277, largely linked to unsupported cash transactions, while the Ministry of Works and Housing recorded GH¢35,664,295, the Ministry of Health GH¢31,256,217, the Ministry of Fisheries and Aquaculture Development GH¢4,010,004, and the Ministry of Food and Agriculture GH¢3,899,011.
Ministries including Communications, Local Government, Tourism and Environment each recorded irregularities below GH¢200,000, underscoring how heavily the 2025 increase was concentrated in Finance and Energy, which together accounted for nearly 99 percent of the national total.
The Auditor-General’s five-year trend analysis shows total MDA financial irregularities rising from GH¢1.08 billion in 2021 to GH¢5.27 billion in 2025 an increase of more than fourfold over the period. Tax irregularities have recorded the fastest growth, becoming the dominant source of financial infractions within the public sector.
With the report expected to be referred to Parliament’s Public Accounts Committee, heads of the affected institutions are likely to be summoned to explain the irregularities and outline measures for recovering the funds.
Throughout the report, the Auditor-General maintains that the full GH¢5.27 billion is recoverable and calls on the relevant authorities to enforce existing laws to ensure the money is recovered and to prevent further losses to the state.
The sharp increase in financial irregularities raises significant questions about the effectiveness of Ghana’s public financial management systems, particularly in tax collection and cash management. The concentration of infractions in the Finance and Energy ministries which together account for 99 percent of the total will likely draw intense scrutiny from lawmakers.
The Auditor-General’s assertion that the full amount is recoverable will test the government’s commitment to enforcement. In previous audit cycles, recovery rates have often fallen short of the amounts identified, raising questions about the deterrent effect of the audit process.
For the GRA, the directive to strengthen supervision and intensify recovery efforts comes at a time when domestic revenue mobilisation is a critical priority for the Mahama administration. The outcome of these efforts will be closely watched by policymakers, development partners and citizens alike.