Home Business Auditor-General Flags GH¢15.8bn of Public Sector Irregularities at Energy Ministry in 2024

Auditor-General Flags GH¢15.8bn of Public Sector Irregularities at Energy Ministry in 2024

Public Sector Irregularities at Energy Ministry
Public Sector Irregularities at Energy Ministry

The Ministry of Energy has been identified as the leading contributor to public sector irregularities in 2024, according to the Auditor-General’s Report. The ministry accounted for GH¢15.8 billion, representing 86% of total irregularities uncovered in the public sector.

In a breakdown of financial breaches across Ministries, Departments, and Agencies (MDAs), the Auditor-General revealed that the Ministry of Energy was responsible for GH¢15,832,975,487 out of GH¢18.42 billion in irregularities recorded for the year ending December 31, 2024.

Most of these public sector irregularities stemmed from contract and procurement violations, store-related lapses, and tax irregularities. The findings point to systemic issues in how public contracts are awarded and managed within the energy sector.

ECG at the centre of public sector irregularities

The Electricity Company of Ghana (ECG) was cited as a key contributor to the financial breaches. The Auditor-General’s Report noted ECG’s underreporting of revenue and weak internal control systems.

In 2023, ECG declared GH¢8.64 billion, although it actually collected GH¢11.59 billion—an understatement of over GH¢2.95 billion. This discrepancy was not reported to the Ministry of Energy or oversight bodies.

“This development is particularly concerning,” the report said, citing the government’s ongoing energy sector recovery efforts. These efforts include large-scale investments in energy infrastructure, access, and transition projects.

While a large portion of the financial breaches are listed as recoverable, the Auditor-General urged tougher enforcement of financial rules and internal audits across MDAs. The report stated: “We recommended strict implementation of our recommendations to ensure financial discipline in the management of public resources.”

The Ministry of Energy’s irregularities far exceed those reported by other public institutions, heightening calls for immediate reform.

Wider implications for policy and oversight

These public sector irregularities come at a time when Ghana is under pressure to meet International Monetary Fund (IMF) performance targets. Government is also working to restore fiscal stability amid rising debt levels and tight budgets.

According to the report, failure to address procurement and contract monitoring weaknesses could undermine public trust and delay progress on development goals.

The Auditor-General’s recommendations call for stricter supervision and tighter compliance mechanisms within the Ministry of Energy and across all MDAs. If implemented, these steps could significantly reduce public sector irregularities in subsequent audit cycles.

The scale of breaches uncovered within ECG and the Energy Ministry signals a systemic failure in internal governance. These findings are likely to influence budgetary decisions and sectoral oversight frameworks in the second half of 2025.

With such a dominant share of public sector irregularities attributed to one ministry, analysts warn that broader reforms are essential to protect public funds. The Ministry of Energy’s position at the top of this year’s audit report will likely remain a central topic in national conversations around transparency and accountability.