PAC urges Finance Ministry to conduct annual audits of gov’t arrears to curb financial irregularities

The Public Accounts Committee of Parliament (PAC) has called on the Ministry of Finance to consider conducting annual audits of government arrears claims instead of waiting until the end of a government’s tenure.

The appeal was made by the Chairperson of the Committee, Abena Osei Asare, at the conclusion of a zonal hearing held in Ada.

Addressing concerns raised in successive Auditor-General’s reports, Mrs Osei Asare expressed deep concern over persistent infractions within the public service and weaknesses in public financial management systems.

According to her, common irregularities identified over the years include unsupported expenditures, procurement breaches, weak internal control systems, delayed retirement of imprests, payroll anomalies, and in some cases, the deliberate falsification of invoices and financial claims.

“The Committee remains deeply concerned about recurring infractions within the public service, including unsupported expenditures, procurement breaches, weak internal controls, delayed retirement of imprests, payroll irregularities, and, in some instances, the deliberate falsification of invoices and claims,” she stated.

Mrs Osei Asare stressed that such financial irregularities go beyond mere accounting errors, warning that they undermine public trust and weaken confidence in state institutions and governance systems.

“These issues are not merely accounting errors; they undermine public trust and weaken confidence in state institutions,” she added.

The PAC Chairperson further reminded public servants that accountability should not begin only when officials are summoned before oversight bodies such as the Public Accounts Committee.

“We therefore wish to remind all public servants that accountability begins long before one appears before the Public Accounts Committee,” she said.

She explained that accountability must be embedded throughout the entire public financial management process, beginning from decision-making and documentation to procurement, certification, approval, and payment procedures.

“It begins at the point of decision-making, documentation, procurement, certification and payment approval,” Mrs Osei Asare noted.

She also called for renewed responsibility and professionalism among public officers in the management of state resources, emphasising the importance of ethical leadership and integrity within the civil service.

“Every public officer must appreciate that public funds are sacred. The future of public financial management in Ghana will depend not only on laws and systems, but also on personal integrity, ethical leadership and professionalism within the civil service and public institutions,” she stated.

Mrs Osei Asare additionally urged the Ministry of Finance to strengthen capacity-building programmes for public officials responsible for expenditure management and financial administration.

“The Ministry of Finance is encouraged to find cost-effective means of training all public spending officers, as well as middle-level officials, in the requirements of the revamped Public Financial Management Act,” she added.

According to her, introducing annual special audits of arrears claims would help reduce financial irregularities, improve expenditure control, strengthen fiscal discipline, and minimise the need for repeated large-scale audits conducted at the end of government administrations.

She maintained that greater transparency and accountability in arrears management would enhance fiscal credibility and improve confidence in Ghana’s public financial management system.