By Eugene Davis
The Chairperson of Parliament’s Public Accounts Committee (PAC), Abena Osei-Asare, has expressed concern over the persistent disregard for Ghana’s fiscal discipline laws, warning that the lack of strict enforcement of sanctions is undermining accountability in the management of public finances.
Speaking to journalists after the Committee’s three-day public hearing on the 2024 Auditor-General’s Report on Ministries, Departments, and Agencies (MDAs), Mrs. Osei-Asare observed that the same infractions highlighted year after year continue to recur because offenders face little or no consequences.
“One thing is clear: it is because we are not applying the sanctions. If we apply the sanctions to the infractions that the MDAs are cited for, it will go a long way to reduce some of these financial breaches,” she stressed.
Legal Framework and Fiscal Oversight
Ghana’s 1992 Constitution (Article 187), the Standing Orders of Parliament, the Audit Service Act, 2000 (Act 584), and the Public Financial Management (PFM) Act, 2016 (Act 921)—together with its 2025 Amendment (Act 1136)—form the framework for prudent financial management.
The PAC’s oversight role is anchored in these laws, which mandate Parliament to scrutinize public accounts, ensure transparency, and enforce accountability. However, the PAC Chair noted that compliance remains weak, particularly at the operational level.
Recurring Infractions
Mrs. Osei-Asare disclosed that the Committee’s latest hearings revealed several recurring irregularities, including:
Unauthorized use of Internally Generated Funds (IGFs) by some state entities without prior approval from the Ministry of Finance.
Failure of local auditors at district levels to cooperate fully with external auditors during site inspections.
Late or incomplete documentation, with agencies often producing records only after being cited in the Auditor-General’s report.
She emphasized the need for sensitization of local auditors and finance officers to ensure timely and accurate submissions.
“When auditors request documents and agencies delay or fail to provide them until after being cited, it undermines the integrity of the process. We must train and sensitise officers at the operational level to give auditors maximum support,” she added.
Recoveries and Impact
Despite the recurring challenges, the PAC Chair revealed that the Committee’s work, in collaboration with the Auditor-General, has led to the retrieval of approximately GH¢12.9 billion in public funds.
She insisted, however, that stronger enforcement mechanisms are required to deter future mismanagement.
“Yes, we are making an impact, but we can do better. This is why we seek the support of the media and the public to strengthen accountability. Protecting the public purse is a collective duty,” she said.
Responsibility of MDAs and Leadership
Mrs. Osei-Asare further underscored the responsibility of Chief Directors, Principal Spending Officers, and Ministers, insisting they must take greater control of financial management within their respective entities.
While acknowledging that not all transactions pass through ministers, she cautioned that chief directors and spending officers must demonstrate stricter compliance and leadership.
Recommendations for Stronger Fiscal Discipline
To strengthen fiscal discipline, the PAC Chairperson recommended:
Full application of sanctions under the PFM Act for recurring infractions.
Greater capacity-building for local auditors to ensure compliance with external audit requirements.
Stricter oversight of IGFs, with prior approval required for all expenditures.
Enhanced collaboration with the media and civil society to sustain public pressure on compliance.
She added that while the Auditor-General’s reports have become more robust—capturing issues that previously went unreported—lasting change will depend on political will, institutional discipline, and consistent enforcement of sanctions.
