The government has uncovered GH¢194 billion worth of contracts awarded by Ministries, Departments, and Agencies (MDAs) without approval, deepening Ghana’s economic troubles.
Presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11, Finance Minister Dr Cassiel Ato Forson said these contracts, which make up 16.5% of Ghana’s Gross Domestic Product (GDP), were signed without commencement certificates, in violation of the Public Financial Management Act (Act 921).
“The road sector alone accounts for GH¢100 billion of these unapproved contracts,” Dr Forson said. “Most of these deals were signed without financial clearance, adding more pressure to an economy already struggling with arrears and debt.”
Beyond these unapproved commitments, the government faces GH¢67 billion in outstanding payments owed to contractors, suppliers, and state institutions.
This figure does not include GH¢1.73 billion owed to Independent Power Producers (IPPs) or the GH¢68 billion debt of the Electricity Company of Ghana (ECG) to contractors.
Dr Forson said an audit has been commissioned to verify these arrears before any payments are made. “Not a penny will be paid until we confirm these obligations,” he told Parliament.