Finance Minister Dr. Cassiel Ato Forson has revealed that Ministries, Departments, and Agencies (MDAs) under the Akufo-Addo-Bawumia administration committed over GHC195 billion in contract awards.
Appearing on The Point of View with Bernard Avle on Channel One TV on Wednesday, March 12—one day after presenting the 2025 Budget Dr. Forson explained that the sheer magnitude of these financial commitments forced him to put a hold on payments.
He noted that numerous payment requests had been submitted, leading him to demand further clarification from the MDAs before any disbursement.
Providing a breakdown, he stated that more than GHC195 billion in contracts had been awarded, with additional outstanding payment certificates still in the pipeline.
Of these, GHC18.2 billion had already been submitted to the Ministry of Finance for processing by the Controller and Accountant General, while another GHC49.5 or GHC49.6 billion remained unprocessed at the Accountant General’s office.
“MDAs had awarded contracts in excess of GHC195 billion. Then, aside from that, the MDAs had generated certificates yet to be paid. Those that went to the Ministry of Finance and were being processed to the Controller and Accountant General amounted to GHC18.2 billion.
“Another GHC49.5 or GHC49.6 billion were certificates yet to be processed at the Accountant General’s office for payment. So, I was alarmed. And they expect the government to pay them,” he stated.
His revelation raises significant concerns about the financial obligations inherited from the previous administration and their potential impact on Ghana’s economic stability.
The Government Transition Team clarified that no financial clearance has been issued by the current administration since the December 7 elections, preventing any new payments or recruitment within ministries, departments, or agencies (MDAs).
Madam Fatimatu Abubakar, spokesperson for the team, refuted claims by the incoming government regarding last-minute payments and recruitment, explaining that such processes had already begun months ago.
She reiterated that the current government had shown goodwill for a smooth transition and called for professionalism from both sides during the handover process.
Speaking in Accra on December 19, Madam Abubakar, who also serves as the Minister of Information, explained that recruitment efforts for nurses and allied health workers were initiated well before the elections, and tax incentives for One-District, One-Factory companies had already been presented to Parliament.
She further stated that the Government had strictly followed the Transition Act’s guidelines, and the co-chairs of the Joint Transition Team had overseen the transition process impartially.
Madam Abubakar advised Mr. Felix Kwakye Ofosu, spokesperson for the incoming administration, to refrain from making statements that could escalate tensions.
“The recruitment of security personnel started at the beginning of the year, while the processes for purchasing 65-feet naval ships began three years ago,” she added.
Last Tuesday, the Electricity Company of Ghana paid a visit to the Ministry of Energy, cutting off electricity to the entire building for over half a day.
Power was only restored after the mother ministry of the Electricity Company of Ghana(ECG) paid their outstanding payment in full.
This will be the fate of many other Ministries, Departments and Agencies (MDAs) and State Owned Enterprises (SOEs) who owe ECG huge amounts of money, forcing the power retailer to embark on a massive revenue mobilization exercise beginning on Monday, March 20, 2023, to Thursday, April 20, 2023.
The exercise is using almost all ECG staff from top management to junior officers to retrieve all the monies owed them.
According to the Managing Director, Mr Samuel Dubik Mahama Esq, the company is owed over GHS 5 billion from the month of September 2022 to February 2023.
Most of this debt resides with the SOEs and MDAs.
The strategy, therefore, is to take these agencies by storm, from March 20, 2023, and those who refuse to settle their bill immediately will be meted the same punishment as the Ministry of Energy.
Ahead of this exercise, Mr Dubik Mahama toured all the operational regions of ECG to sensitize the staff on how to go about the mobilization of the revenue, to respect the customer at all times.
He also reminded the staff that ECG is a business and not a charity and everyone must start to behave as such.
It is expected that at the end of the exercise, 100% of the debt would be recovered.
The Chairman of the Public Accounts Committee of Parliament has asked the government to review the current guarantor system used to support workers to pursue higher education.
According to the Chairman of the Committee, most of the beneficiaries do not comply with the terms and conditions of the agreement after completing their programmes, adding that this situation makes it difficult for the State to recover the investment made in these workers.
James Klutse Avedzi was of the view that government could allow interested applicants to use banks as guarantors instead of individuals so that defaulted workers can easily be tracked.
Mr. Avedzi made this known at the ongoing public hearing of the Committee when the Ministry of Health and their various agencies appeared before them to respond to a number of infractions cited in the Report of the Auditor-General on the Public Accounts of Ghana, Ministries, Departments and Other Agencies (MDAs) for the year ended 31st December 2020.
When the Minister of Health, Kweku Agyeman Manu, Director General of the Ghana Health Service, Dr. Patrick Kuma-Aboagye, Chief Director and Senior Officers of the Health Service appeared before the Committee, the Chairman ordered the arrest of two guarantors of two former staff of Korle-bu Teaching Hospital for failing to fulfill bonds after being sponsored to pursue their higher education.
According to the report of the Auditor-General, the former workers of Korle-Bu Teaching Hospital have failed to honour their bonds or refund an amount to the tune of Gh 98,546.00, which was spent on their studies abroad.
Members of the Committee asked questions relating to the queries cited in the Auditor-General’s Report and officials from the Ministry of Health and agencies including NTC-Pantang, Ghana Institute of Clinical Genetics, Nurses Training College Damongo among others.
A Labour Consultant Mr Austin Akufo Gamey has said that hiring freeze must be discriminatory.
He stated that no matter how difficult the situation is, the application cannot be total.
Speaking on the Ghana Tonight show with Alfred Oansey on TV3 Monday November 28, Mr Gamey said “It is obvious that no matter how hard the situation is they cannot do it flat-footed, they will have to do it in selective application.
“Teaching is teaching, you necessarily must have teachers in the classroom, nursing and all other health service providers and some emergency type of public service, first respondent if there is a disaster you have no choice therefore they have to be selectively.”
The Secretary General of the Trades Union Congress (TUC) Dr Yaw Baah has also said that net freeze on employment into the public sector is better than total embargo.
He explained that net freeze is when retirees are replaced when they exit. This, he said, allows productivity and efficiency to go on.
Total freeze on the other hand, he added, is when the retirees are not replaced neither are new employees recruited. That will be detrimental to productivity hence, they do not want that to happen.
Speaking in an interview with TV3’s Daniel Opoku on the sidelines of a post budget analyses forum held by the TUC in Accra on Monday November 28, Dr Yaw Baah said “we still don’t have the details of the IMF conditionality but you will not be wrong if you think this is part of IMF conditions. Since 1965 when Ghana Government started going to IMF, employment freeze has always been part, in the last one that ended, employment freeze was one but in that case it was net.
“Net meant that if somebody retires you can replace the person. So the net freeze is what we need. But this one, we don’t know the details, whether it is the net freeze or total freeze.
“If it is a net freeze then it is like the previous one but if it is a total freeze it is another ball game all together. There are 644,000 people on the single spine. Let us assume without admitting that about 5 per cent of them retire yearly.
“If only five percent retire every year, we are talking now about over 30,000 people retiring and if the 30,000 people retire and they don’t replace them it will affect service delivery. If you reduce numbers by over 30,000 and they are not replaced then your effectiveness in service delivery will be affected.”
The Minister of Finance Ken Ofori-Atta announced in the 2023 budget a freeze on employment into the civil and public service.
He also said there shall be no new government agencies established in 2023. He said these while presenting the budget in Parliament on Thursday November 23.
Mr Ofori-Atta said as a first step toward expenditure rationalisation, government has approved a number of directives which takes effect from January, 2023.
These are “All Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs) and State-Owned-Enterprises (SOEs) are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit system, and fuel depots. Accordingly, 50% of the previous years (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOEs;
“A ban on the use of V8s/V6s or its equivalent except for cross country travel. All
government vehicles would be registered with GV green number plates from
January 2023; Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;
“Only essential official foreign travel across government including SOEs shall be
allowed. No official foreign travel shall be allowed for board members.”
The Finance Minister added “Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff; As far as possible, meetings and workshops should be done within the official environment or government facilities; Government sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year; Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;
“A freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies; A hiring freeze for civil and public servants, No new government agencies shall be established in 2023; There shall be no hampers for 2022; There shall be no printing of diaries, notepads, calendars and other promotional, merchandise by MDAs, MMDAs and SOEs for 2024; All non-critical project must be suspended for 2023 Financial year.”
Public sector workers, Municipal Metropolitans and District Assemblies (MMDAs) have been asked not to give out hampers to their stakeholders this Christmas.
Finance Minister, Ken Ofori-Atta announced this decision on Thursday while presenting the 2023 Budget in Parliament.
The decision forms part of the government’s measures to rationalise its expenditures in the wake of the prevailing economic hardship.
“There shall be no hampers for 2022,” the Minister stated.
Mr. Ofori-Atta further announced the ban on the printing of diaries, notepads and calendars by MMDAs and SOEs from 2024.
“There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024,” he added.
“All non-critical projects must be suspended for the 2023 financial year.”
The Minister said the move is geared towards expenditure rationalisation, in the wake of the economic woes.
In addition to the reduction in expenditure, MDAs, MMDAs and SOEs have been directed to reduce fuel allocations by 50% to government appointees.
“All MDAs, MMDAs and SOEs are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit systems, and fuel depots. Accordingly, 50% of the previous year’s (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs, and SOEs,” he directed.
Government through the Finance Minister, Ken Ofori-Atta has announced some 13 measures to rationalise public expenditure.
According to him, these measures are Cabinet directives that are expected to take effect from January 2023.
This comes on the back of several calls by some sections of the public for the government to cut down its expenditure to salvage the economy.
Currently, Ghana’s economy is under pressure, resulting in higher living costs and galloping inflation.
Presenting the 2023 Budget in Parliament on Thursday, Mr Ofori-Atta stated that the measures are “a first step towards expenditure rationalisation.”
The 13 measures are listed below:
All MDAs, MMDAs and SOEs are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit systems, and fuel depots. Accordingly, 50% of the previous year’s (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOES;
2. A ban on the use of V8s/V6s or its equivalent except for cross-country travel. All government vehicles would be registered with GV green number plates from January 2023;
3. Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;
4. Only essential official foreign travel across government including SOEs shall be allowed. No official foreign travel shall be allowed for board members. Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;
5. As far as possible, meetings and workshops should be done within the official environment or government facilities;
6. Government-sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year;
7. Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;
8. A freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies;
9. A hiring freeze for civil and public servants
10. No new government agencies shall be established in 2023;
11. There shall be no hampers for 2022;
12. There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024;
13. All non-critical projects must be suspended for 2023 Financial year.
