GH¢7.5m paid to 4 dead pensioners

The Auditor-General has uncovered the payment of more than GH¢7.4 million to four deceased pensioners over a seven-year period, exposing what appears to be a serious breakdown in Ghana’s pension payment system and prompting calls for the recovery of the funds and possible legal action against those involved.

The revelation is contained in the Auditor-General’s Report on the Public Accounts of Ghana – Ministries, Departments and Other Agencies (MDAs) for the year ended December 31, 2025, which identified the payments as part of payroll irregularities uncovered during the audit.

According to the report, a total of GH¢7,494,975.34 was paid to four pensioners after their deaths between February 2019 and March 2026, in violation of Regulation 88 of the Public Financial Management Regulations, 2019 (L.I. 2378), which requires public funds to be properly safeguarded and disbursed only to legitimate beneficiaries.

The Auditor-General described the payments as an avoidable loss of public funds and directed the Controller and Accountant-General’s Department to immediately recover the full amount from the next-of-kin of the deceased pensioners.

In addition to recovering the principal amount, the report instructed that interest should also be charged at the prevailing Bank of Ghana policy rate, with all recovered monies paid into the Auditor-General’s Recoveries Account at the Bank of Ghana.

The report further warned that where the funds cannot be recovered voluntarily, the Controller and Accountant-General should initiate legal proceedings against both the bankers who facilitated the transactions and the next-of-kin of the deceased pensioners.

The Auditor-General indicated that the recommendation is intended to ensure accountability for the loss of public funds while deterring future abuses within the pension payment system.

The discovery forms part of a wider pattern of payroll and financial irregularities uncovered during the 2025 audit of Ministries, Departments and Agencies, highlighting persistent weaknesses in public sector financial controls despite ongoing reforms aimed at improving accountability and protecting state resources.

The latest findings are expected to renew concerns over the effectiveness of mechanisms used to verify pension beneficiaries and promptly remove deceased persons from the government payroll, an issue that has repeatedly resulted in significant financial losses to the state.

Financial irregularities jumps to GH¢5.26bn in 2025

Ghana’s public finances suffered a major blow in 2025 after the Auditor-General uncovered financial irregularities exceeding GH¢5.26 billion, with tax-related leakages alone accounting for more than 91% of the total amount, highlighting persistent weaknesses in revenue administration and financial controls across the public sector.

The findings, contained in the Auditor-General’s Report on the Public Accounts of Ghana: Ministries, Departments and Other Agencies (MDAs) for the year ended December 31, 2025, reveal the highest level of financial irregularities recorded in the past five years and underscore the growing challenge of protecting public resources at a time when government is pursuing fiscal consolidation and economic recovery.

The report shows that total financial irregularities surged to GH¢5,266,315,079 in 2025, representing an increase of more than 155 per cent over the GH¢2.06 billion recorded in 2024.

Tax leakages dominate
The most significant source of financial losses was tax irregularities, which climbed sharply to approximately GH¢4.8 billion, accounting for more than nine out of every ten cedis lost through financial irregularities during the year.

The Auditor-General also identified an additional US$154,976 in tax-related irregularities, further increasing concerns about revenue leakages within Ghana’s tax administration system.

The scale of the tax losses comes at a time when government continues to rely heavily on domestic revenue mobilisation to finance public expenditure, reduce borrowing and meet commitments under ongoing fiscal reform programmes.

The report suggests that weaknesses in tax administration continue to pose a major risk to government revenue generation.

Cash losses exceed GH¢410 million
Beyond tax-related issues, the audit identified significant weaknesses in cash management.
Cash irregularities amounted to GH¢410.7 million, making them the second-largest category of financial irregularities recorded during the year.

The report also identified irregularities involving debts, loans and advances amounting to GH¢29.3 million.

Payroll management also remained a source of concern, with payroll irregularities reaching nearly GH¢20 million, raising questions about unauthorised salary payments, weak personnel controls and deficiencies in payroll administration.

Additional irregularities were recorded under contracts, stores management and rent collections, indicating that financial control challenges persist across multiple areas of public administration.

Five-year trend worsens
The Auditor-General’s analysis points to a worrying upward trend in financial irregularities over the past five years.

In 2021, total financial irregularities stood at just over GH¢1.08 billion.
The figure increased to GH¢1.41 billion in 2022 before rising sharply to more than GH¢2.4 billion in 2023.

Although total irregularities declined slightly to about GH¢2.06 billion in 2024, the situation deteriorated significantly in 2025, with losses reaching a record GH¢5.26 billion.

The latest figure represents the highest amount reported since the Auditor-General began compiling the current series of public sector financial irregularities.

Tax losses accelerating
The report shows that tax irregularities have consistently driven the overall increase in financial losses.
Tax-related irregularities rose from GH¢989 million in 2021 to GH¢1.25 billion in 2022 before climbing further to GH¢2.16 billion in 2023.

Although they declined to GH¢1.58 billion in 2024, the figure nearly tripled within a year, reaching GH¢4.8 billion in 2025.

The sharp increase suggests that revenue leakages remain one of the biggest threats to Ghana’s public finances despite ongoing reforms aimed at strengthening tax compliance and improving domestic revenue mobilisation.

Financial management concerns
Cash irregularities also recorded a significant upward trajectory during the review period, rising from GH¢45.8 million in 2021 to GH¢410.7 million in 2025, reflecting growing concerns about financial controls, accountability and the management of public funds.

The Auditor-General’s findings are expected to intensify calls for stronger financial governance, tighter internal controls and enhanced accountability across Ministries, Departments and Agencies.

Financial analysts say reducing leakages in tax administration, payroll management and public expenditure will be critical if Ghana is to strengthen domestic revenue mobilisation, restore fiscal discipline and improve the efficiency of public financial management at a time of continued budgetary pressures and rising development financing needs.