Rans Logistics refunds GH¢19.1m after audit - Deputy Finance Minister tells PAC

The Deputy Minister of Finance, Thomas Nyarko Ampem, has disclosed that Rans Logistics, a logistics and transportation firm, has refunded GH¢19.1 million to the state after being cited for overpayments in grain transportation under the Auditor-General’s report on government outstanding claims. 

He explained to Parliament’s Public Accounts Committee (PAC) that the refund followed the presentation of the audit findings to Parliament and forms part of early recoveries resulting from efforts to validate and clean up arrears estimated at GH¢68 billion.

“I want to give assurance that the Ministry of Finance is excited about this process, and we have committed our expectation is that we will come out with findings and recommendations that will help all of us to improve on the management of our public financial system,” Mr Nyarko Ampem, who is also the Member of Parliament for Asuogyaman, said.

He said this when he led senior officials from the ministry and its related agencies to appear before the committee yesterday  to respond to the Auditor-General’s Special Audit Report on government outstanding claims and commodities. 

Validation exercise  

Mr Nyarko Ampem stated the validation exercise provided an opportunity for all transactions, including those previously rejected or pending, to be reviewed and published.

He said all companies and individuals affected were given the chance to challenge audit decisions, a process he described as transparent and necessary to ensure fairness and accuracy.

Citing the Rans Logistics case as evidence of the audit’s impact, the Deputy Minister of Finance explained that the company refunded the GH¢19.1 million within a week after the findings were presented to Parliament on March 10, this year.

“It was also stated that the company was paid with rice in excess of 7,000 tonnes of rice. So we are expecting the value of seven tonnes to be also 7,000 tonnes of rice.

We are expecting that as well,” he added. 

AG involved

Mr Ampem further indicated that the Attorney-General was working with relevant institutions to determine the appropriate course of action on all infractions identified in the report.

That, he said, was aimed at ensuring accountability and preventing a recurrence of such irregularities.

The Deputy Finance Minister emphasised that the audit process was already achieving its intended purpose of safeguarding public resources and improving financial discipline.

Mr Nyarko Ampem assured the committee that the ministry would continue to act on recommendations arising from the exercise.

He expressed optimism that the findings would lead to reforms in the management of public finances, strengthen controls, and enhance transparency in government expenditure.

Mr Nyarko  Ampem assured the PAC that the ministry was learning from past mistakes and improving compliance.

He explained that as both a government agency and central management body, all commitments and approvals now went through the Finance Minister, ensuring that the ministry follows the same procedures as other ministries, departments and agencies.

“That is what is happening currently, and we believe that at the end of this process, we will have other recommendations that will help us even do better,” he added.

PAC concerns

However, PAC members raised concerns over the payment processes at the Ministry of Finance.

The audit report highlighted rejected Bank Transfer Advices (BTA), payments of already-settled invoices, contracts executed without commencement certificates, and gaps in documentation and validation.

The committee, led by the Chairperson, Abena Osei Asare, and Ranking Member, Samuel Atta-Mills, emphasised that those lapses could compromise transparency, misrepresent government liabilities, and disrupt cash management, highlighting the urgent need for improved internal controls and adherence to established financial procedures.

BTAs

The committee pointed to GH¢7.4 million BTAs that auditors had rejected due to insufficient supporting documentation.

Officials explained that some BTAs could not be confirmed with third-party contractors, while others reflected exchange rate differences between the date of the contract and the compilation of audit data.

The Chief Director, Dr Patrick Nomo, explained that the ministry’s Debt Management, Legal, and Accounts divisions compiled multiple sources of information, leading to inherent differences.

He emphasised that final payments were only processed after validation by the Controller and Accountant General, reducing the risk of duplicate or erroneous payments.

The PAC highlighted cases where contracts worth over GH¢900 million were processed without signed contracts or commencement certificates.

The ministry clarified that for internal projects, ministerial memos served as approvals and that contract awards were sometimes delayed due to procurement processes.

The officials acknowledged that certain commitments were included in the auditors’ reports before actual disbursement, explaining that those were intentions to spend funds rather than completed payments.

The committee pressed that such practices could misrepresent liabilities and undermine compliance with the Public Financial Management Act.

Paid amount errors

The committee also questioned the inclusion of amounts that had already been paid, such as a GH¢2.4 million renovation payment.

The ministry admitted that during compilation, some transactions were erroneously listed among outstanding payables.

“This is one of the few transactions that, as a result of the compilation process, was included in the list of outstanding money that had actually already been paid,” the Chief Director stated.

Officials gave an assurance that these would not result in duplicate payments because further validation would occur before any release of funds.

The PAC emphasised that recurring errors by schedule officers could disrupt cash management and diminish public confidence in financial oversight.

Work, Payments disparities

PAC enumerated payments exceeding the actual work completed, citing a February 2025 project, where 39 per cent of the contract sum was paid while only 17 per cent of the work was verified. 

The ministry responded that payments were in line with contractual provisions for mobilisation and interim payment certificates (IPCs), and that the fiscal progress of work actually exceeded payments.

Officials maintained that the auditors’ assumptions about work-to-payment ratios did not fully reflect contract terms or progress at the time of disbursement.

Ageing analysis, reporting weaknesses

The PAC raised concerns over the ministry’s lack of an ageing analysis for commitments and payables, which could impede effective cash management.

Ministry officials acknowledged the gap and indicated that their current system, the Ghana Integrated Financial Management Information System (GIFMIS), lacked full functionality to track ageing of payables.

They said plans were underway to implement a personalised cash management framework to improve reconciliation and scheduling of payments.

The committee stressed that robust internal controls and timely record-keeping were essential to prevent future audit issues and ensure transparency.