Ten state institutions failed to pay over GHS 3 billion in taxes in 2024, according to the Auditor-General's latest report. This significant tax default pushed total financial irregularities across government ministries, departments, and agencies to a record GHS 5.2 billion in 2025.
This surge in irregularities resulted largely from unpaid tax obligations. Tax-related irregularities accounted for approximately GHS 4.8 billion. This represents about 92% of all identified irregularities. More than half of these irregularities, specifically GHS 3 billion, came from outstanding taxes owed by just ten state institutions in 2024.
This record GHS 5.2 billion in irregularities in 2025 marks the highest level recorded since 2021. The figure shows a 156% increase compared to the previous year. It is also more than three times the average annual irregularities over the past five years. This trend points to increasing challenges in financial oversight within Ghana's public sector.
The Auditor-General's report revealed that the Electricity Company of Ghana (ECG) had the largest outstanding tax liability. ECG failed to transmit approximately GHS 1.4 billion in taxes. This represents nearly half of the total unpaid tax obligations identified among the ten institutions. The Ghana Airports Company Limited followed with GHS 430 million in outstanding tax obligations. The Produce Buying Company Limited registered GHS 330 million.
Other institutions named in the report include GIHOC Distilleries Company Limited, Tema Oil Refinery, AirtelTigo Ghana, and Graphic Communications Limited. These findings raise serious questions about tax compliance within state-owned enterprises. This comes even as the government actively works to improve domestic revenue collection and tax compliance nationwide.
While unpaid taxes dominated the report, other categories of irregularities were also present. Cash irregularities amounted to GHS 410 million. Loan irregularities stood at GHS 29 million. Payroll irregularities totaled GHS 19 million, and procurement irregularities reached GHS 1.1 million. Contract irregularities amounted to GHS 3.3 million, and rent irregularities stood at GHS 44,000. These other categories, however, made up only a small part of the total irregularities compared to the large scale of outstanding tax obligations.
The report's findings challenge the idea that widespread procurement or payroll breaches are the main drivers of irregularities. Instead, the accumulation of unpaid taxes by state-owned enterprises appears to be the primary cause. This is especially relevant given the government's focus on strengthening domestic revenue mobilization. The government has also aimed to improve tax compliance across the public sector. The report, therefore, suggests that compliance challenges persist even within state institutions themselves. This is despite various tax administration measures introduced for private businesses and individuals.
Policymakers will need to address these significant internal tax compliance issues within state institutions. Failure to do so could undermine broader efforts to improve the country's financial health. The public will be watching how the government responds to these findings. Stricter enforcement and improved accountability mechanisms for state-owned enterprises may be necessary to correct these financial lapses.