Dep. Finance Minister calls for stronger internal controls to protect public funds

Deputy Finance Minister Thomas Nyarko Ampem has urged public institutions to bolster internal controls to deter financial irregularities and preserve public funds. He emphasized that robust internal auditing is essential for responsibly managing public resources to support Ghana's development priorities under the government's New Economy strategy.

At the 25th anniversary of the Institute of Internal Auditors Ghana, Mr. Ampem stated that internal auditors should shift from detecting issues post-occurrence to proactively preventing financial losses. Ghana's aspirations for a more productive, industrialized, and resilient economy capable of generating jobs, adding value to resources, and improving livelihoods necessitate substantial investments in infrastructure, skills, technology, and productive enterprises, making it crucial to safeguard limited public funds from wastage and mismanagement.

"We aim for an economy that creates jobs, adds value to our resources, and enhances livelihoods," he declared. "However, we cannot mobilize scarce resources for development while allowing them to leak through weak financial controls."

Mr. Ampem, speaking on behalf of Finance Minister Dr. Cassiel Ato Forson, cited data from the 2025 Auditor-General's reports indicating that financial irregularities across five categories of public institutions dropped from about GH¢20.72 billion in 2024 to GH¢7.69 billion in 2025, a 62.9 percent reduction. While acknowledging the progress, he noted that the residual irregularities underscore the ongoing need to enhance accountability and improve public financial management.

"A 62.9% reduction is a step forward; the remaining GH¢7.69 billion of irregularities serve as a reminder that the task is far from complete," he remarked.

The Deputy Minister also detailed findings from the audit of the government's legacy arrears and payables, during which GH¢8.1 billion out of GH¢68.7 billion in claims submitted for audit were rejected. These rejected claims were primarily due to insufficient supporting documentation, duplicate submissions, falsified receipts, and claims for work not performed.

Mr. Ampem stressed that it is more effective to prevent improper payments initially than to expend years attempting to recover them. He urged internal auditors to intensify scrutiny of procurement processes, payroll systems, and significant public investments to identify risks early and prevent the misuse of public funds. He advocated for the integration of data analytics, digital tools, and ongoing risk assessments, emphasizing that digitalization must be complemented by professional competence, institutional independence, and management accountability.

He also called on heads of institutions to empower internal auditors, safeguard their independence, and promptly address audit recommendations to prevent recurrence of weaknesses. Mr. Ampem concluded by stressing that the success of the government's New Economy agenda hinges not only on the mobilized resources but also on their effective safeguarding and utilization.

"We cannot establish a New Economy built on old habits of waste, inadequate controls, and avoidable financial losses," he concluded.