Thomas Nyarko Ampem and Kwasi Agyei at the PAC sitting
The Controller and Accountant General, Kwasi Agyei, has dismissed claims that the public debt was overstated by GH¢138 million, insisting that recent reconciliations with the Auditor General confirm the figures in the government’s financial statements remain accurate.
Appearing before the Public Accounts Committee (PAC) of Parliament yesterday, Mr. Agyei explained that the reported discrepancies arose from the treatment of debts owed by state-owned enterprises (SOEs), particularly those without government guarantees.
According to him, the whole-of-government accounts prepared by his office cover local government authorities, ministries, departments and agencies (MDAs), as well as state-owned enterprises.
He stated that within this framework, the debt is presented in two distinct forms: the central government debt, which includes guaranteed SOEs, and the unguaranteed debts of other SOEs.
“When we did the summation, our figure for the whole of government accounts was GH¢861.4 billion. Out of this, central government and guaranteed SOEs accounted for GH¢711.4 billion,” Mr. Agyei explained.
He added, “These are the figures reported in the financial statement. After reconciling with the auditors, the figures remained unchanged. There was no overstatement; just a reconciliation to clarify the categorisation of debts.”
The controversy began when the Auditor General’s report suggested that public debt had been overstated by GH¢138 million.
PAC Chairperson, Abena Osei Asare, who raised the matter during the sitting, explained that the committee had summoned both the Auditor General and the Controller and Accountant General to reconcile the figures. She said the exercise had now brought clarity.
“The difference had to do with the unguaranteed loans of state-owned enterprises. These are not part of central government’s debt unless the SOEs default. So the figures reported did not materially affect government’s finances,” Mrs. Osei Asare told the committee.
She urged the Controller and Accountant General’s Department to improve collaboration with the Audit Service to avoid delays that could affect statutory reporting timelines.
“Auditors are bound by law to submit reports to Parliament by the end of June. Delayed responses can affect this process, and so timely collaboration is essential,” she cautioned.
Mrs. Osei Asare further explained to the public the distinction between central government debt and the obligations of SOEs. She stressed that only when SOEs default on their unguaranteed loans do such debts migrate onto the central government’s books, making it inappropriate to lump both figures together.
“The unguaranteed SOE debts sit in their own books. Unless they are unable to pay, the Ministry of Finance cannot add those amounts to the central government debt. Doing so would amount to double counting,” she said.
She continued, “That is why the mid-year budget statement, the Auditor General’s report, and the Bank of Ghana’s data all reflect just over GH¢700 billion as the official central government debt.”
Ranking Member on the Committee, Samuel Atta Mills, welcomed the clarification, noting that both the whole-of-government figure of GH¢861.4 billion and the central government figure of GH¢711.4 billion remain intact.
“The numbers haven’t changed. They are the same as reported in the financial statistics,” he said.
The Deputy Finance Minister, Thomas Nyarko Ampem, described the PAC’s conclusion as crucial for protecting Ghana’s fiscal reputation.
He expressed concern that public commentary had created the impression that the Controller and Accountant General’s Department had exaggerated the country’s debt figures.
“It was worrying for the impression to be created that the Controller and Accountant General overstated the public debt,” Mr. Ampem said.
“This meeting has sent a clear message that there was no overstatement. The public debt as reported remains the same. That is the most important conclusion Ghanaians must take away,” he noted.
By Ernest Kofi Adu, Parliamentary Correspondent