Auditor-General Uncovers GH¢138.9bn Public Debt Overstatement

Ghana’s actual public debt for the 2024 financial year has been revised down to GH¢737.17 billion, significantly lower than the GH¢876.08 billion previously reported in the government’s consolidated financial statements.

The revelation, detailed in the latest Auditor-General’s Report, exposes an overstatement of GH¢138.91 billion, raising serious concerns about the accuracy of Ghana’s public financial records.

According to the Auditor-General, the discrepancy stems from inconsistencies between data from the Ministry of Finance and the Whole of Government Accounts (WGA). The report cites variances across domestic and external debt figures, including loans attributed to Cocobod.

Specifically, domestic debt was overstated by GH¢132.98 billion, while external debt figures were inflated by GH¢1.77 billion. Additionally, Cocobod’s domestic debt was recorded GH¢4.15 billion higher than the actual figure, although its external debt was slightly understated by GH¢2.1 million.

“These discrepancies undermine public confidence in the government’s fiscal reporting and compromise the transparency expected under Section 54 of the Public Financial Management Act, 2016 (Act 921),” the report warns. The Act mandates that public debt be reported fully and accurately to reflect the nation’s true fiscal position.

The Auditor-General further noted that overstated debt figures can mislead stakeholders, including investors, multilateral partners, and the general public, about the country’s debt sustainability.

To address this, the report calls for immediate improvements in reconciliation practices between the Ministry of Finance and other accounting entities to ensure consistency and accountability in financial reporting.

This revelation comes at a time when public trust in fiscal discipline and debt management is critical to restoring investor confidence and securing external financing. Analysts say the findings should prompt swift reforms in the country’s financial reporting systems and internal controls.

The Auditor-General’s Report has reignited debate on the credibility of official data and the importance of independent oversight in maintaining fiscal transparency.