Ghana’s economic problems have gotten worse when the government discovered contracts worth GH¢194 billion that were given out by Ministries, Departments, and Agencies (MDAs) without permission.
Finance Minister Dr. Cassiel Ato Forson, who presented the 2025 Budget Statement and Economic Policy to Parliament on March 11, claimed that these contracts, which account for 16.5% of Ghana’s GDP, were signed without commencement certificates, which is against the Public Financial Management Act (Act 921).
“GH¢100 billion of these unapproved contracts are in the road sector alone,” Dr. Forson stated. “The majority of these agreements were signed without financial approval, further taxing an economy already beset by debt and arrears.”
In addition to these unauthorized obligations, the government still owes GH¢67 billion in unpaid invoices to suppliers, contractors, and public institutions.
This amount excludes the GH¢68 billion in debt owed to contractors by the Electricity Company of Ghana (ECG) and the GH¢1.73 billion owed to Independent Power Producers (IPPs).
Before any payments are paid, an audit has been commissioned to confirm these arrears, according to Dr. Forson. He informed Parliament that “no money will be disbursed until we verify these commitments.”
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