State-Owned Enterprises (SOEs) in Ghana recorded about GH¢18.6 billion in financial management irregularities, raising concerns about the financial risks their operations could create for the government.

This is contained in a new IMF Technical Assistance Report titled “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation”.

The report used findings from the 2024 Report of the Auditor-General.

The biggest part of the irregularities came from outstanding debtors and loans, which amounted to GH¢12.54 billion.

This represents money owed to the SOEs and funds that have remained tied up instead of being recovered or properly accounted for.

Cash irregularities were the second-largest category, amounting to GH¢4.58 billion. These included payments without proper supporting documents and revenues that were not properly recorded or accounted for.

The Auditor-General also found contract irregularities worth about GH¢871.82 million. Procurement irregularities stood at GH¢335.27 million, while payroll irregularities amounted to GH¢191.6 million.

There were also tax irregularities of GH¢77.06 million and stores irregularities of GH¢4.5 million.

The IMF has warned that these continued financial problems could put additional pressure on the government, especially when important SOEs have large debts, significant financial obligations or continue to make losses.

To address the situation, the IMF is calling for stronger financial oversight and better governance of SOEs. It also wants closer cooperation between the Ministry of Finance and the State Interests and Governance Authority, as well as stronger monitoring of investments made by SOEs.

The concern is that if these financial problems continue unchecked, the government may eventually have to step in to support struggling SOEs, creating an even bigger burden on public finances.