Public Boards, Corporations and Other Statutory Institutions (PBCSIs) lost a total of GH¢904.65 million through tax irregularities in 2025, the latest report of the Auditor-General has revealed.
The report identified tax-related breaches as the largest category of financial infractions recorded during the period, forming part of total irregularities exceeding GH¢1.24 billion.
According to the report, the tax irregularities arose mainly from the failure of public institutions to deduct and remit statutory taxes — including withholding tax, Value Added Tax (VAT) and Pay-As-You-Earn (PAYE) — to the Ghana Revenue Authority (GRA) within the stipulated period.
Of the total tax infractions, GH¢821.88 million was attributed to unremitted withholding taxes, VAT and PAYE by the Electricity Company of Ghana (ECG).
The report further highlighted contract irregularities amounting to GH¢153.37 million, largely resulting from payments made for items not supplied and the failure to enforce contractual provisions.
Out of this amount, GH¢144.58 million was linked specifically to payments for goods and services that were not delivered.
The Auditor-General attributed these lapses to weak contract management and inadequate oversight, and urged management of public institutions to strengthen contract administration and strictly enforce contractual obligations to safeguard public resources.
Store irregularities were the second-highest category, amounting to GH¢167.28 million.
These were mainly attributed to missing items such as transformers, conductors and electricity meters.
The report recommended a forensic review to establish the full extent of the losses, recover missing assets where possible, and hold those responsible accountable.
Procurement irregularities totalled GH¢12.26 million, arising from breaches of the Public Procurement Act, 2003 (Act 663), as amended, including the acquisition of assets above their assessed market value.
The Auditor-General recommended the recovery of excess payments from persons found responsible and urged strict adherence to procurement laws.
In addition, payroll irregularities amounted to GH¢8.96 million. These were attributed to weak payroll validation systems, unauthorised salary and allowance payments, overpayments, and the payment of salaries to officers who failed to return to duty after being granted leave with pay.
The report cited specific instances, including an overpayment of GH¢1.56 million as lunch subsidy by the University of Ghana Medical Centre, and the payment of GH¢1.07 million in additional salaries by the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) without approval from the Ministry of Finance.
The Auditor-General advised management of the affected institutions to recover all unearned salaries and allowances into the Auditor-General’s Recoveries Account, obtain the requisite approvals before making additional salary payments, and strengthen payroll controls.
Overall, the report urged Public Boards, Corporations and Other Statutory Institutions to reinforce internal controls, comply with tax, procurement and public financial management laws, and enhance accountability to prevent the recurrence of such irregularities and protect public funds.
BY CLIFF EKUFUL
