Finance Minister Dr. Cassiel Ato Forson has announced the commissioning of a forensic audit into several stalled development projects following evidence of financial irregularities.
Presenting the mid-year budget review in Parliament on Thursday, July 24, the Finance Minister disclosed that Ghana owes US$3 billion in undisbursed loans across 55 bilateral projects, frozen after the country defaulted on its external debt on December 19, 2022.
With an IMF and Official Creditor Committee (OCC)-mandated disbursement ceiling of US$250 million annually, it would take at least 12 years to fully utilize the remaining funds.
To expedite delivery, the Finance Minister stated that the government submitted a priority list of 24 projects, each over 70 percent complete, to the OCC and IMF, allowing disbursement to resume once bilateral agreements are signed.
He said key items include the Volta River bridge at Volivo, Tema-Aflao Road, Kumasi roads and drainage extensions, several hospital upgrades, water infrastructure, as well as education and renewable energy facilities, noting that he goal is to complete all by the end of 2028.
However, he stated that concerns have emerged over discrepancies between funds released and actual project progress.
“It has come to the attention of the Ministry of Finance that a number of contractors implementing some of these 55 stalled projects have drawn down on the loans with no work done to match the amounts drawn down. Again, some contractors have submitted additional costs in excess of what Parliament approved,” Dr. Forson revealed.
On the back of this, he said the Finance Ministry has commissioned a forensic audit into these projects, an unprecedented step aimed at holding contractors accountable and restoring confidence in public project delivery.
“No room exists for an increase in the scope of work for any of the projects on the priority list,” Dr. Forson stated, directing implementing agencies to comply strictly with the approved project scope.
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