The Controller and Accountant-General’s Department (CAGD) has issued a strong clarification regarding the financial handling of the Accra-Kumasi Expressway project, dismissing claims circulating on social media that the government has already spent nearly GH¢11 billion on the initiative despite construction works not yet commencing.
In an official press release dated today, the CAGD stated that such claims stem from a misunderstanding of standard government accounting procedures.
“The attention of the Controller and Accountant-General’s Department (CAGD) has been drawn to claims circulating on social media suggesting that Government has spent almost GH¢11 billion on the Accra-Kumasi Expressway project even though the main construction works have not started,” the release read.
The department emphasised that the funds in question were transferred from the Consolidated Fund to a dedicated Bank of Ghana account held by Accra-Kumasi Expressway Limited, a Special Purpose Vehicle (SPV) established through the Ghana Infrastructure Investment Fund (GIIF). The company is classified as a State-Owned Enterprise (SOE) for accounting purposes.
According to the CAGD, while the transfers are recorded as “Grant Expenditure” in the Central Government’s books (and as “Grant Revenue” in the receiving entity’s accounts), this is a routine accounting treatment and does not mean the money has been spent on actual construction.
“The CAGD wishes to emphasise that these funds have not been paid to any contractor or spent on construction works. They remain in the dedicated Bank of Ghana account pending project execution,” the statement noted.
The release further explained that preparatory activities, such as right-of-way clearing currently being undertaken by the Ghana Armed Forces, are separate and not financed from these earmarked funds.
Project Background
The Accra-Kumasi Expressway is one of the government’s flagship infrastructure projects aimed at improving connectivity between Ghana’s capital and its second-largest city. To prevent past issues like delays and cost overruns, the project is being implemented through a structured SPV model following parliamentary approval.
Funding was earmarked from the Annual Budget Funding Amount (ABFA) and mineral royalties in the 2025 national budget.
Accounting Principles Explained
The CAGD used the opportunity to educate the public on Ghana’s three-tier government accounting structure: Central Government (MDAs), Local Government (MMDAs), and Government Business Entities (SOEs).
Under established Public Financial Management rules, transfers from the Consolidated Fund to entities outside the central accounting group are treated as grants. The department cited similar transfers to the District Assemblies Common Fund (DACF), GETFund, and the National Health Insurance Authority (NHIA) as examples of this standard practice.
“It is therefore incorrect to conclude that because the transfer appears as expenditure in the accounts of Central Government, the funds have already been spent on the construction of the Accra-Kumasi Expressway,” the statement concluded.
The department assured Ghanaians that the accounting treatment is fully compliant with the country’s Public Financial Management framework and established government accounting standards.
