Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has underscored the government’s unwavering commitment to fiscal prudence and enhanced transparency in managing public finances, emphasizing the critical need to prevent the accumulation of new arrears. This renewed focus on fiscal discipline stems from the government’s recognition of the detrimental impact of mounting arrears on economic stability and sustainable growth. The Minister’s statement signals a proactive approach towards addressing the lingering issue of outstanding contractor claims, which represent a significant financial burden on the national economy. Dr. Forson emphasized the government’s determination to instill greater accountability and efficiency in public financial management practices.
Central to this commitment is the recent amendment of the Public Financial Management Act, a pivotal legislative reform aimed at strengthening oversight and tightening controls over public procurement and contract management processes. These amendments seek to establish a more robust framework for fiscal governance, minimizing the risk of future arrears accumulation. The expectation is that these legislative changes will foster greater transparency, ensuring that public resources are utilized judiciously and in accordance with established procedures. By bolstering the legal framework governing public finances, the government aims to create a more responsible and sustainable fiscal environment.
Dr. Forson revealed that the Auditor-General is poised to submit an interim audit report on outstanding contractor claims. This report, expected imminently, will provide a comprehensive assessment of the validity and legitimacy of these claims. It marks a crucial step towards initiating the payment process for verified claims, offering a potential avenue for resolving the long-standing issue of contractor arrears. This auditing process underscores the government’s commitment to transparency and accountability in addressing outstanding financial obligations.
The Finance Minister acknowledged inheriting a substantial backlog of contractor arrears amounting to GH¢67 billion, a figure indicative of the scale of the challenge facing the administration. He outlined a four-year plan to systematically audit and clear these accumulated arrears, demonstrating a long-term perspective on resolving this issue. As part of this commitment, the 2025 Budget has allocated GH¢13 billion towards settling verified claims. This allocation highlights the government’s dedication to addressing the financial burden posed by outstanding debts, while acknowledging the need for a structured approach to verification and payment.
Seeking to leverage partnerships in its economic recovery efforts, Dr. Forson urged Ecobank, Ghana’s largest financial institution, to deepen its involvement, specifically in bolstering private sector growth and agricultural development. Recognizing the crucial role that the financial sector plays in stimulating economic activity, the government is seeking to forge stronger collaborations with key players like Ecobank. The Minister highlighted the potential of these sectors to contribute significantly to the overall economic recovery, emphasizing the need for increased investment and support.
Responding positively to the Minister’s call, Ecobank CEO Jeremy Awori reaffirmed the bank’s commitment to supporting Ghana’s economic resurgence. He expressed the bank’s interest in expanding its lending portfolio within Ghana and forging stronger strategic alliances with the government. This commitment signifies the potential for a productive partnership between the government and the private sector, working in tandem to drive economic growth and development. The presence of the Minister for Energy and Green Transition, John Abdulai Jinapor, at the meeting further highlights the government’s multi-sectoral approach to fostering economic recovery.
