An audit into government arrears for 2024 has uncovered major financial irregularities, including a fictitious debt of GHS89.4 million linked to the One -District- One- Factory initiative.

According to the audit findings, the Ministry of Trade and Industry in 2024 submitted a request to the Ministry of Finance seeking the release of GHS89.4 million to five commercial banks as the government’s contribution toward interest payments under the 1D1F programme.

The Ministry of Finance subsequently processed the request and forwarded it to the Controller and Accountant General’s Department for payment.

The request formed part of Budget Transfer Authorisations (BTAs) awaiting cash release at the Controller and Accountant General’s Department.

However, when auditors contacted the five commercial banks to verify the liability, all the banks reportedly denied being owed any such amount by the government under the arrangement.

Auditors therefore concluded that the GHS89.4 million debt was fictitious, noting that the intervention prevented what could have resulted in the disbursement of a large sum of public funds to settle a non-existent obligation.

The audit also identified another irregularity involving a payment of GHS10.5 million, which records indicated had been transferred into an account described as a “Buffer Account” at a commercial bank.

Upon verification, the bank confirmed that it had never received the payment and that the account number cited did not exist in its system.

According to the auditors, the account number did not even conform to the bank’s official account numbering format, leading to the conclusion that the account itself was fictitious.

Following the findings, auditors recommended that the entire One District One Factory scheme undergo a forensic audit.

The recommendation comes amid reports that the government had spent about GHS391 million by the end of 2024 as its contribution toward interest subsidies under the programme.

The audit findings raise fresh concerns about financial controls, verification procedures and oversight in the management of funds allocated to major government industrialisation initiatives.