The energy and roads construction sectors have come under scrutiny over breaches of public financial management and procurement rules, with the International Monetary Fund (IMF) warning that the lapses could expose the government to additional fiscal risks.

An IMF Technical Assistance Report found that more than 15% of payables and 6.4% of procurement commitments recorded across the two sectors were not compliant with public financial management regulations or statutory requirements.

The report singled out the Electricity Company of Ghana (ECG) over weaknesses in procurement and contractual arrangements.

It referenced a performance audit by the Ghana Audit Service which found that ECG procured electricity meters worth about US$145 million through 50 contracts without complying with the Public Procurement Act.

The IMF also raised concerns about unsolicited “take-or-pay” Power Purchase Agreements (PPAs), which have contributed to electricity generation capacity exceeding actual national demand.

According to the Fund, the arrangements have created financial obligations that continue to weigh on the energy sector and government finances.

The IMF is therefore calling for stronger oversight of procurement, contracts and financial commitments by state-owned enterprises to reduce fiscal risks and ensure compliance with public financial management laws.