The premix fuel sector in Ghana has been thrust into the spotlight following an audit report revealing significant financial irregularities totalling approximately GH¢27.7 million, prompting government action to recover the funds and overhaul the sector’s governance framework. The findings, disclosed by the Ministry of Fisheries and Aquaculture Development (MoFAD), expose systemic failures in oversight, accountability and financial management that have hampered the effectiveness of a programme designed to support coastal fishing communities nationwide.
The premix fuel subsidy is a cornerstone of government support for artisanal fishers, enabling them to access fuel at reduced cost to power outboard motors vital for fishing activities. The programme incorporates a 53 percent Community Development Fund (CDF) component, which is intended to channel a portion of premix revenues into community infrastructure and social projects, such as drainage systems, sanitation facilities, schools and other essential services in coastal areas. However, an audit covering the period 2017 to 2024 has raised grave concerns about how these funds were managed.
According to the audit, conducted by MoFAD’s Internal Audit Unit, 132 Landing Beach Committees (LBCs) failed to properly account for funds received from premix fuel allocations, resulting in losses of GH¢13.7 million alone from unexplained or unverified disbursements. When combined with other identified irregularities in the system, the total questionable amounts reached GH¢27.7 million.
Unauthorised withdrawals, non compliance with approved fund distribution formulas and poor documentation were among the key lapses highlighted by the audit. These deficiencies meant that resources intended for vital community development work never reached their intended projects, leaving many coastal constituencies unable to address longstanding infrastructure needs and undermining efforts to achieve the Sustainable Development Goals (SDGs).
Reacting to the report, Emelia Arthur, the Minister of Fisheries and Aquaculture Development, framed the audit and subsequent recovery campaign as a critical turning point for the premix fuel programme. She emphasised the government’s commitment to transparency, accountability and long term reform in the sector, noting that irregularities inherited from previous years will not be ignored and must be rectified for the benefit of fishing communities that depend heavily on the subsidy.
To address the governance gaps exposed by the audit, the National Premix Secretariat, under the leadership of Administrator Ebow Mensah, has commenced recovery processes and issued demand notices to the affected LBCs. Structured repayment arrangements are being pursued where appropriate, and more serious cases are being referred for further action in line with legal and administrative protocols.
Significant reforms are also being implemented to ensure such losses do not recur. Among the measures are the introduction of a nationwide Community Development Fund oversight mechanism, implementation of an accountability and protection framework, clearer signatory rules, mandatory reporting for all LBCs, alignment of CDF management with the Premix Fuel Automation System, enhanced training for LBC executives, and stricter compliance monitoring across the sector.
These reforms are designed not only to plug governance loopholes but also to strengthen controls around the receipt, disbursement and utilisation of premium fuel revenues for true community benefit. Officials stress that by tightening financial oversight and empowering local stakeholders with better tools and processes, the premix fuel system can be transformed into a more reliable and accountable vehicle of socio economic development.
The irregularities have broader implications for public trust and fiscal management in the fisheries sector. Critics have long noted that irregular disbursement of public funds can erode confidence in government programmes and harm vulnerable populations that rely on these interventions for their livelihood. By confronting these issues head on, MoFAD and the Secretariat hope to rebuild confidence among fisherfolk and other stakeholders in the fair and effective implementation of the premix subsidy scheme.
The government’s efforts to stabilise other aspects of the premix supply chain, including the recent settlement of GH¢115.9 million in under recoveries owed to Bulk Distribution Companies, also complement the recovery campaign. That payment was made under the leadership of President John Dramani Mahama as part of the broader Resetting Ghana Agenda, aimed at improving liquidity, reducing operational constraints and ensuring a consistent supply of subsidised fuel to artisanal fishers.
In conclusion, the identification of GH¢27.7 million in irregularities within the premix fuel sector has triggered a comprehensive response from government authorities, combining recovery actions, governance reforms and enhanced oversight. These steps aim to safeguard public funds, restore the integrity of the subsidy programme and ensure that resources intended to support Ghana’s coastal communities are used effectively to improve living conditions and drive sustainable development.