Auditor-General reports 41.6% drop in public sector financial irregularities

• Posted on August 19, 2024August 19, 2024
• by Nana Kwesi Coomson
• Comment

Financial irregularities among public boards, corporations, and other statutory institutions decreased by GHS6.2 billion in 2023, according to the Auditor-General’s report.

For the period ending December 31, 2023, the total irregularities recorded a 41.6 per cent reduction (GHS6,260,178,686), dropping from GHS15,059,441,806 in 2022 to GHS8,799,263,120. The irregularities included outstanding debtors/loan recoveries, cash, payroll, tax, stores, procurement, and contract issues.

The reduction in irregularities was largely attributed to increased compliance and the implementation of audit recommendations by the entities covered, according to Auditor-General Johnson Akuamoah-Asiedu.

He shared these insights during an interview with the Ghana News Agency at the 2024 financial audit launch and the Regional District Auditors Conference in Accra on Friday, August 16.

“Our clients are now taking our recommendations seriously and have implemented several of the suggestions from previous audits, which has led to a reduction in infractions,” Mr Akuamoah-Asiedu stated.

However, he noted that procurement irregularities remained high during the audit period but clarified that these did not necessarily involve theft but rather procedural lapses.

“This is confirmed by the audit report, which indicates that, except procurement and contract irregularities, all other types of irregularities decreased in 2023 compared to 2022,” he explained.

He called on the government to further increase support for the Audit Service to strengthen its independence, noting, “For the past four years, the government has been increasing our budget, but more needs to be done.”

Mr. Akuamoah-Asiedu also stated the need for a collective effort to increase awareness of corruption in public institutions, highlighting that the Audit Service has deployed digital systems to enhance its operations.

Speaking at the event, Deputy Minister of Finance, Dr. Stephen Amoah, stressed the importance of collaborating with internal auditors to strengthen internal controls and ensure greater accountability.

Dr Amoah urged all stakeholders to work together to ensure fiscal sustainability and encouraged the Auditor-General to continue exercising the power of surcharging and disallowances to reduce irregularities.

He reaffirmed the government’s commitment to providing the necessary financial support to enhance the effectiveness and efficiency of the Audit Service, which is crucial for reducing irregularities and supporting national development.

Additionally, Mr. Anthony Sarpong, a Senior Partner at KPMG, encouraged the Audit Service to intensify its scrutiny of public accounts, apply sanctions, and focus on recovering funds, in addition to uncovering irregularities.

He noted that these actions play a critical role in ensuring the effective management and safeguarding of public finances, while also attracting more foreign direct investment into the country.

Mr. Sarpong also urged public officers to hold themselves accountable for the proper management of public funds and encouraged the Audit Service to leverage Artificial Intelligence (AI) in its operations.

-Joynews