Ghana loses GH¢4.2 billion due to irregularities in use of public funds

The Daily Graphic article actually states that public institutions lost 4.55 billion Ghana cedis over the last 5 years due to financial irregularities in seven broad areas:

  • Outstanding debts/loans/recoverable charges – 1.97 billion Ghana cedis
  • Cash irregularities – 2.32 billion Ghana cedis
  • Payroll – 4.5 million Ghana cedis
  • Irregularities in Procurement – 55 million Ghana cedis
  • Tax inconsistencies – 8 million Ghana cedis
  • Stores irregularities – 32 million Ghana cedis
  • Contract irregularities – 156 million Ghana cedis

In a way, I’m glad this report from the Auditor-General came out.  It shows that somebody cares about corruption.

At current exchange rates of 2.25 Ghana cedis to 1 USD, the amount lost over the last five years is approximately $2 billion.  It appears that 2011 and 2012 were the worst years with about 2 billion Ghana cedis gone missing in each of those years.  Considering Ghana’s GDP is around $40 billion, it appears that irregularities occurred at 2.5 percent of GDP for the past two years.

2.5 percent of GDP!

If you ask a Ghanaian who is to blame for the country’s problems, you inevitably hear, “It’s our leaders.”  This report suggests that corruption is rampant.  No single individual seems to be culpable.

One comment

  1. Pingback: Ghana loses GH¢4.5 billion due to irregularities in use of public funds | Xklusives

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