Governance

Development Authorities in Ghana Criticized for Operating Autonomously Without Oversight

Accra: The Coastal, Middlebelt, and Northern Development Authorities in Ghana have been criticized for operating with significant autonomy, lacking budgetary control oversight from the Office of Government Machinery (OGM). Alhaji Dr. Abubakar Wayoe, Acting Chief Director of the Office of the President, highlighted these concerns during his appearance before the Public Accounts Committee of Parliament (PAC) public hearing in Accra.

According to Ghana News Agency, Alhaji Dr. Abubakar Wayoe stated, "The Development Authorities were operating as if they're autonomous. The Office of Government Machinery (OGM) did not have control over their budgets even though they are under the OGM. The Ministry of Finance handles their budgets and financial issues. They were over pampered." This autonomy has led to financial infractions, including unearned salaries, unaccounted payment vouchers, and a lack of budgetary control.

The Development Authorities were described as being "over pampered," indicating inadequate oversight and accountability. Members of the PAC emphasized the need for public officials to discharge their duties responsibly rather than lamenting over existing problems. Madam Abena Osei Asare, the Chairperson of PAC and Member of Parliament for Atiwa East, urged public servants to be firm, without fear or favor, to promote financial propriety and accountability at the ministries, departments, and agencies (MDAs).

Mr. Cletus Seidu Dapilah, a member of PAC and Member of Parliament for Jirapa, called on political appointees to give a "free hand to public servants to work" to ensure accountability and transparency in the use of public funds. The 2024 Auditor-General's Report has recorded various financial irregularities in Ghana's public sector, including GHS4.6 billion in cash irregularities involving public boards and statutory institutions.

The report highlighted that the Electricity Company of Ghana (ECG) accounted for a substantial portion of about GHS67 billion payables. It found that almost 50% of Ghana's GHS67 billion payables for 2024 were potentially invalid, raising concerns about accountability and fiscal discipline. The Auditor-General also reported an overstatement of Ghana's public debt by GHS138.91 billion, highlighting weaknesses in financial reporting and asset management.

These issues underscore the need for improved oversight, transparency, and accountability in Ghana's public financial management.