By Alex Ababio
The Controller and Accountant-General’s Department (CAGD) has moved to dispel growing public concern over claims that nearly GH¢11 billion allocated to the flagship Accra-Kumasi Expressway project has already been spent, despite the fact that major construction work has not yet begun.
In a strongly worded clarification issued in Accra, the Department insisted that no portion of the allocated funds has been paid to contractors or used for construction, stressing that the money remains safely lodged in a dedicated Bank of Ghana account awaiting project execution. The clarification comes after widespread public speculation and social media discussions questioned whether the government had already exhausted project funds before physical works commenced.
Why the Clarification Became Necessary
According to the statement signed by Cephas N. Dosoo, Head of Public Relations at the CAGD, the Department considered it necessary to respond because many people had interpreted accounting entries in government financial records as evidence that the money had already been spent.
“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 stressed.
The Department maintained that the accounting treatment used complies fully with Ghana’s Public Financial Management (PFM) framework and internationally accepted government accounting standards.
A $4 Billion Mega Project at the Centre of Ghana’s Infrastructure Agenda
The proposed Accra-Kumasi Expressway represents one of the largest infrastructure investments in Ghana’s recent history.
Government estimates place the total project cost at approximately US$4 billion, with completion targeted for 2028. The highway is expected to significantly reduce travel time between Accra and Kumasi, improve road safety, lower transportation costs and strengthen trade between Ghana’s southern ports and the northern corridor.
At a recent business forum organised by Ishmael Yamson and Associates, Finance Minister Dr. Cassiel Ato Forson disclosed that government had already secured US$1 billion toward financing the project.
According to the Finance Minister, the initial financing package consists of:
– US$500 million generated from the uncapping of petroleum revenues under the Annual Budget Funding Amount (ABFA); and
– US$500 million from mineral royalty proceeds.
The remaining financing is expected to be mobilised through additional public and private funding arrangements as implementation progresses.
Understanding the Accounting Controversy
The controversy centres on how government records financial transfers.
The CAGD explained that after Parliament approved the concession arrangement, government transferred funds from the Consolidated Fund into a dedicated account belonging to Accra-Kumasi Expressway Limited, the Special Purpose Vehicle (SPV) established specifically to execute the project.
Under Ghana’s public accounting rules, such transfers are automatically recorded as grant expenditure in the books of central government.
However, the Department stressed that recording a transfer as expenditure does not mean the money has actually been spent on construction.
“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 explained.
The Department noted that identical accounting treatment applies whenever central government transfers funds to statutory bodies including:
– District Assemblies Common Fund (DACF)
– Ghana Education Trust Fund (GETFund)
– National Health Insurance Authority (NHIA)
In each case, the transfer is recognised as expenditure by central government while the receiving institution records it as revenue, even though the funds may not yet have been utilised.
Why Government Created a Special Purpose Vehicle
The government says it deliberately established Accra-Kumasi Expressway Limited through the Ghana Infrastructure Investment Fund (GIIF) to avoid the delays, financing bottlenecks and cost overruns that have affected previous national infrastructure projects.
The SPV has been classified as a State-Owned Enterprise (SOE) for funding and accounting purposes.
Infrastructure financing experts generally regard SPVs as useful project management vehicles because they ring-fence project financing, improve governance structures and provide greater transparency over how dedicated project funds are managed.
Ghana Armed Forces’ Role Explained
The CAGD also addressed another issue generating public debate.
It clarified that the ongoing right-of-way clearing being undertaken by the Ghana Armed Forces (GAF) forms part of preliminary site preparation and is not being financed from the GH¢11 billion dedicated account.
This distinction, the Department said, is important because many observers mistakenly assumed preparatory activities indicated that project funds had already begun flowing to contractors.
Public Financial Experts Say Accounting Entries Should Not Be Confused With Cash Spending
Public finance specialists have long cautioned against confusing accounting classifications with actual cash expenditure.
The International Public Sector Accounting Standards (IPSAS), developed by the International Public Sector Accounting Standards Board (IPSASB), distinguish between recognition of transfers in financial statements and the eventual utilisation of those resources by recipient entities.
Similarly, the International Monetary Fund’s Government Finance Statistics Manual (GFSM 2014) explains that transfers between different public-sector entities are recorded according to established government accounting principles and should not automatically be interpreted as evidence that project implementation has already occurred.
These international standards broadly align with the explanation offered by the Controller and Accountant-General’s Department regarding the Accra-Kumasi Expressway funding arrangements.
Infrastructure Risks Still Remain
Although the accounting clarification resolves one aspect of the public debate, infrastructure economists note that securing financing represents only one phase of delivering mega projects.
Oxford University infrastructure scholar Professor Bent Flyvbjerg, one of the world’s leading authorities on major infrastructure delivery, has consistently argued that project delays are among the strongest drivers of cost escalation.
His widely cited research found that prolonged implementation periods substantially increase the likelihood of cost overruns, making timely execution critical for large transport infrastructure projects.
For Ghana, that means maintaining transparent procurement, effective contract management and strict financial oversight will be just as important as securing the initial funding.
Public Confidence Will Depend on Transparency
The Accra-Kumasi Expressway remains one of the Mahama administration’s most ambitious infrastructure commitments.
While the Controller and Accountant-General’s Department insists the GH¢11 billion remains untouched inside a dedicated Bank of Ghana account, public attention is now shifting from accounting treatment to implementation.
Citizens, investors and development partners will be watching closely for the next milestones—including procurement, contractor mobilisation, engineering designs, environmental compliance and construction timelines.
For now, the CAGD maintains that reports suggesting government has already spent the money are inaccurate.
Its position is unequivocal: the funds remain intact, no contractor has been paid from the dedicated account, and the accounting entries reflect standard government financial reporting rather than actual construction expenditure.
As Ghana embarks on what could become one of the country’s most transformative transport projects, transparency, regular public disclosure and adherence to public financial management rules are likely to determine not only the project’s success but also public trust in how billions of cedis of taxpayer resources are managed.