IMF Flags GH¢18.6bn in Financial Irregularities Across ECG, COCOBOD, and Other State-Owned Enterprises

An International Monetary Fund (IMF) Technical Assistance Report has uncovered significant financial management irregularities totaling GH¢18.6 billion within Ghana’s State-Owned Enterprises (SOEs). The report, titled “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation,” warns that persistent financial weaknesses and breaches of public financial management rules are heightening fiscal risks for the government. These findings come at a time when the performance of state-controlled entities continues to lag behind the private sector, with 19 out of 53 monitored SOEs reporting net losses despite being expected to generate dividends for the state.

The GH¢18.6 billion in irregularities is primarily driven by outstanding debtors and loans, which account for GH¢12.54 billion of the total. The IMF report also identified GH¢4.58 billion in cash irregularities, including unsupported payments and revenue discrepancies, as well as GH¢871.82 million in contract-related issues. Other significant lapses include procurement irregularities of GH¢335.27 million and payroll discrepancies amounting to GH¢191.6 million. These financial vulnerabilities are further compounded by tax and stores irregularities, which suggest systemic oversight failures across several key sectors of the economy.

Specific entities, notably the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD), were singled out for major procurement and governance breaches. The IMF highlighted that the ECG spent approximately US$145 million on electricity meters without complying with the Public Procurement Act and expressed concern over unsolicited "take-or-pay" Power Purchase Agreements that strain public finances. Similarly, an audit of COCOBOD revealed that a staggering 87% of contracts for its cocoa roads investment programme were awarded without competitive tendering, raising serious red flags regarding project management and financial transparency.

In response to these challenges, there is a growing call for SOEs to transition toward greater financial independence. Sammy Gyamfi, CEO of the Ghana Gold Board, has emphasized that state enterprises must commit to reducing their reliance on government funding and enhance their own fundraising capabilities. This sentiment is echoed by Eric Bonsu Agyabeng of the State Interests and Governance Authority (SIGA), who noted that while 34 SOEs did report a profit after tax, the overall sector still struggles to match the efficiency of privately controlled entities. The IMF and industry leaders recommend enhanced oversight and closer coordination between the Ministry of Finance and SIGA to mitigate the substantial fiscal exposure created by these ongoing financial irregularities.