The Ministry of Finance has been ranked the most fiscally reckless public institution in Ghana in the 2nd Fiscal Recklessness Index which was launched at the Tang Palace Hotel in Accra on 31st May, 2022.
During a presentation at the launch of the report, a research consultant with Imani, Dennis Asare disclosed that the Ministry recorded more than GH¢11 billion in losses to the state.
Mr. Asare said the report shows that the Ministry has consistently appeared as the most reckless institution.
IMANI Africa and Oxfam highlighted how reckless Ghanaian public institutions have been with their fiscal mismanagement from 2015 to 2020 as reported by the Auditor-General’s report.
The Ministry of Health, the Ministry of Roads and Highways, the Ministry of Health, the Ministry of Trade and Industry were all mentioned among the most fiscally reckless public institutions.
Feebleness in Ghana’s public financial management system are imposing financial costs to the nation despite the implementation of various reform programmes and strategies over the last two decades.
The Auditor- General estimated that the financial irregularities of Ministries, Departments, and Agencies (MDAs) cost the country about GHC13.94 billion between 2015 and 2020, the same period where the Public Financial Management Act 2016 (Act 921) and the PFM Regulation (LI 2378) were passed.
Compared to the GHC1.42 billion combined irregularities of MDAs between 2010 and 2014, the financial cost of MDAs’ fiscal indiscipline has increased more than thirteen times in the last five years.
The effectiveness of oversight institutions and internal controls have declined, resulting in the abuse of the PFM laws in the use of public funds.
The issue of prudent spending and efficient use of public funds has become essential, especially at a time when the government faces a frighteningly high fiscal situation.
Finding solution to the problem, IMANI Centre for Policy and Education with the support of OXFAM (Ghana) have developed a Fiscal Recklessness Index that utilizes the Auditor General’s report to assess the fiscal recklessness of MDAs, the sources of leakages in the public financial management system, and the identified institutional weaknesses that enable waste of public funds to occur.
The 2020 Fiscal Recklessness Index examines irregularities reported between 2015 and 2020.
The first index was published in 2016 and covered irregularities between 2010 and 2014.
Imani’s report strongly recommended the enforcement of punitive measures under the law by the Auditor General, and also strongly charged MDAs to exercise greater control and set performance targets.
Click on the link to read Imani Ghana’s Fiscal Recklessness Index 2020 report.
Story by: Emmanuel Romeo Tetteh