IMANI Africa Report Calls for Parliamentary and Auditor-General Sanctions to Curb Fiscal Irregularities in Ghana
IMANI Africa’s latest Fiscal Recklessness Index has made a call for reforms in Ghana’s Public Financial Management (PFM) laws, recommending that Parliament and the Auditor-General apply existing sanctions to address pervasive financial irregularities.
As external accountability actors in the PFM framework, both institutions hold the authority to impose sanctions, yet have rarely exercised these powers. IMANI’s report suggests that a stricter enforcement of sanctions could act as a powerful deterrent against the recurring tax and cash infractions within Ministries, Departments, and Agencies (MDAs), which have increasingly involved fraudulent withdrawals and embezzlement.
The report further highlights the need for a revised approach to PFM reforms, especially given the country’s recent commitments under the IMF programme. Over the past two decades, Ghana’s PFM reforms have targeted recurring vulnerabilities, yet financial infractions persist, with little improvement in institutional compliance or deterrence.
IMANI recommends that reforms focus on fostering institutional resilience, urging policymakers to shift away from “band-aid” solutions. To address systemic weaknesses, reforms should include measures that promote a low tolerance for financial misconduct and establish robust internal compliance systems.
A central recommendation from IMANI is the creation of an Independent Fiscal Council through amendments to the Fiscal Responsibility Act of 2018. Citing the historical trend of fiscal indiscipline and its impact on the country’s financial integrity, the report argues that current accountability measures are inadequate.
The proposed council would serve as an independent overseer of government fiscal decisions, with a mandate to review and potentially restrain major spending activities by MDAs. It would also supervise the Ministry of Finance’s macro-fiscal planning, overseeing high-stakes expenditures to curb revenue overstatements and other fiscal discrepancies.
IMANI emphasizes that such an independent body could be transformative for Ghana’s PFM landscape, asserting that the council’s oversight could reduce MDAs’ ability to withhold anticipated government revenues for their own budgetary needs. With this body in place, IMANI believes Ghana could see a substantial reduction in the frequency of financial irregularities, ultimately restoring accountability within the PFM framework.
