By Issah Olegor
The public financial management system has come under renewed scrutiny after the Auditor-General uncovered financial irregularities amounting to over GH¢5.26 billion in 2025, representing the highest level of public sector irregularities recorded in the last five years.
The alarming findings are contained in the Auditor-General’s Report on the Public Accounts of Ghana: Ministries, Departments and Other Agencies (MDAs) for the financial year ending December 31, 2025, which points to widespread weaknesses in revenue administration, financial controls and public sector accountability.
According to the report, the total value of financial irregularities rose sharply to GH¢5,266,315,079, more than doubling the amount recorded in 2024 and setting a new five-year record.
The Auditor-General identified tax irregularities as the single largest source of financial losses, accounting for over 91 percent of the total amount.
The report disclosed that tax-related irregularities alone amounted to approximately GH¢4.8 billion, with an additional US$154,976 also identified under tax-related discrepancies, raising fresh concerns about revenue leakages within government institutions.
Beyond tax administration, the audit uncovered cash irregularities totalling GH¢410.7 million, suggesting weaknesses in cash management and financial controls across several public institutions.
The report further identified GH¢29.3 million in irregularities relating to debts, loans and advances, while payroll irregularities amounted to almost GH¢20 million, heightening concerns over unauthorized salary payments, payroll management and compliance with public financial regulations.
Additional financial irregularities were also recorded in contract administration, stores management and rent collection, indicating that challenges extend across multiple aspects of public financial administration.
The latest audit findings continue a worrying trend in the growth of financial irregularities within the public sector over recent years.
According to the report, irregularities stood at just over GH¢1.08 billion in 2021 before increasing to GH¢1.41 billion in 2022.
The figure climbed further to more than GH¢2.4 billion in 2023 before declining slightly to approximately GH¢2.06 billion in 2024.
However, the sharp increase to GH¢5.26 billion in 2025 represents the largest annual rise recorded during the five-year period and has intensified concerns over public financial discipline.
Tax-related losses have consistently driven the increase in financial irregularities.
The report indicates that tax irregularities increased from GH¢989 million in 2021 to GH¢1.25 billion in 2022, before rising again to GH¢2.16 billion in 2023.
Although they declined to GH¢1.58 billion in 2024, the figure surged dramatically to GH¢4.8 billion in 2025, accounting for the overwhelming majority of the year’s irregularities.
Cash management challenges also worsened significantly over the review period. Cash irregularities increased from GH¢45.8 million in 2021 to GH¢410.7 million in 2025, reflecting persistent weaknesses in financial controls and accountability mechanisms across government institutions.
The Auditor-General’s annual reports have become an important tool for Parliament, anti-corruption agencies and oversight institutions in monitoring the use of public funds.
Although financial irregularities identified in audit reports do not automatically constitute fraud or criminal conduct, they often point to breaches of financial regulations, administrative lapses, weak internal controls or failures to comply with established public financial management procedures.
