Ten state institutions failed to pay over GHS 3 billion in taxes in 2024, contributing to a record GHS 5.2 billion in irregularities for 2025. This figure comes from the Auditor-General's latest report on government ministries, departments, and agencies. The Electricity Company of Ghana (ECG) holds the largest outstanding liability among these institutions.
These unpaid taxes represent more than half of the total financial irregularities recorded. The GHS 5.2 billion in irregularities is the highest level since at least 2021. This amount marks a 156% increase from the previous year. It is also more than triple the average annual irregularities over the past five years.
This significant debt from state institutions directly challenges Ghana's broader economic goals. The government is strongly focused on increasing domestic revenue collection. This includes improving tax compliance across the entire economy. Ghana has recently introduced new tax administration measures. These aim to boost compliance among private businesses and individuals.
The Auditor-General's report confirms that tax-related irregularities alone totaled approximately GHS 4.8 billion. This accounts for about 92% of all irregularities identified during the audit. The GHS 3 billion in outstanding tax obligations from 2024 by just ten state institutions heavily influenced this total. This means a substantial portion of the 2025 irregularities originated from unremitted taxes from the previous year.
Specifically, the Electricity Company of Ghana (ECG) did not remit approximately GHS 1.4 billion in taxes. This accounts for nearly half of the total unpaid tax obligations among the ten institutions. The Ghana Airports Company Limited recorded the second largest outstanding tax obligation at about GHS 430 million. The Produce Buying Company Limited followed with approximately GHS 330 million.
Other institutions cited in the report include GIHOC Distilleries Company Limited, Tema Oil Refinery, AirtelTigo Ghana, and Graphic Communications Limited. While unpaid taxes dominated the findings, other irregularities were also present. Cash irregularities amounted to GHS 410 million. Loan irregularities stood at GHS 29 million. Payroll irregularities totaled GHS 19 million.
Procurement irregularities reached GHS 1.1 million. Contract irregularities amounted to GHS 3.3 million. Rent irregularities stood at about GHS 44,000. These other categories, however, made up only a small part of the overall irregularities. This highlights the overwhelming impact of the outstanding tax obligations.
The findings suggest that the main reason for the sharp increase in irregularities was not widespread increases in procurement or payroll breaches. Instead, it was the accumulation of unpaid taxes by state-owned enterprises. This is particularly important given the government's focus on strengthening domestic revenue mobilization. It also emphasizes improving tax compliance within the public sector.
The report raises serious questions about tax compliance within state institutions themselves. This comes as the government continues to implement broader revenue mobilization reforms. These reforms affect the entire economy. The Auditor-General's latest findings indicate significant compliance challenges. These challenges exist within parts of the public sector itself.
Going forward, attention will focus on how the government addresses these outstanding tax liabilities. Decision-makers and financial markets will watch for actions taken against non-compliant state entities. This report could also influence future policy decisions. These policies might aim to enforce stricter tax compliance within the public sector.