Audit Exposes GHS427m Payroll Scandal at Defence Ministry

A shocking audit report has uncovered a massive payroll scandal involving a senior government official who allegedly received over GHS427 million in unearned salaries over 29 months.

The individual at the center of the controversy, Frank Oliver Kpodo, served as Director of Procurement at the Ministry of Defence Ghana during the period under review.

Millions Paid for No Work Done

According to findings by the Auditor-General of Ghana, the payments were made between January 2023 and June 2025.

On average, this amounts to more than GHS14 million per month—funds reportedly paid without corresponding work.

The audit, which examined government payroll systems, aimed to ensure that only legitimate employees receive salaries.

Instead, it exposed what appears to be a deeply flawed system.

Part of a Larger Payroll Leak

The report found that over 6,000 government employees collectively received more than GHS800 million in unearned salaries.

However, Mr Kpodo alone allegedly accounted for more than half of that total.

The scale of the payments exceeds the annual budget allocation of some government sectors, raising serious questions about oversight.

Red Flags and Procurement Concerns

Frank Oliver Kpodo has previously held roles at the University of Health and Allied Sciences and the Ministry of Health before joining the Defence Ministry in 2018.

His tenure has come under scrutiny, particularly during a recent hearing by Parliament’s Public Accounts Committee of Ghana.

Officials were questioned over a GHS4.8 million contract for six SUVs that were reportedly never delivered, despite documentation indicating otherwise.

The committee recommended his interdiction and possible prosecution.

Auditor-General Calls for Immediate Action

In its 2025 Payroll Audit Report, the Auditor-General of Ghana called for the immediate removal of affected individuals from the payroll.

It also directed that the total amount—over GHS801 million—be recovered.

Failure to do so, the report warned, could make principal spending officers personally liable.

Experts Point to Systemic Failure

Financial analyst Nana Kwaku Amankwah Appiah questioned how such large payments could go undetected for years.

He suggested the possibility of a wider network benefiting from the scheme.

“This kind of payment going on for that long suggests more than one person may be involved,” he said.

Calls for Accountability Grow

Procurement expert Kobina Ata-Bedu argued that Ghana’s problem is not a lack of laws, but weak enforcement.

“Until people are punished, nothing will change,” he said.

Meanwhile, Peter Quartey of the Institute of Statistical, Social and Economic Research described payroll fraud as a long-standing systemic issue.

He stressed that “gatekeepers are culpable” and warned that failure to act would only encourage further abuse.

Questions Over Oversight and Responsibility

Investigations show that Evans Agbeme Dzikum served as Chief Director of the Defence Ministry during the period in question, raising further questions about oversight.

Experts say Ghana’s payroll system involves multiple validation layers, making the scale of the irregularities even more concerning.

Kpodo Denies Knowledge of Irregularities

When contacted, Frank Oliver Kpodo described the findings as “worrying and surprising.”

He insisted that his salaries were processed through the Controller and Accountant-General’s Department and supported by verifiable pay slips.

He denied any knowledge of wrongdoing and said he could not explain how such payments occurred.

A System Under Pressure

The revelations have intensified concerns about public sector accountability in Ghana.

With millions lost through payroll irregularities, pressure is mounting on authorities to act decisively.

For many observers, the case is not just about one individual—it highlights deep structural weaknesses that demand urgent reform.