AMA leases two public lands for 90 years without approval

The Auditor-General has declared two land lease agreements worth GH¢5.14 million entered into by the Accra Metropolitan Assembly (AMA) as “null and void and of no legal effect”, after the Assembly failed to obtain the required approval from the Minister responsible for Finance, Dr. Cassiel Ato Forson,

The finding is contained in the Auditor-General’s Report on the Accounts of District Assemblies for the financial year ended December 31, 2025.

According to the report, AMA leased two parcels of public land to Hamm Company Limited for a total lump sum of GH¢5.14 million without first obtaining the written approval of the Finance Minister, contrary to Regulation 157 of the Public Financial Management Regulations, 2019 (L.I. 2378).

The report explained that under the law, a Principal Spending Officer must obtain the Finance Minister’s written approval before leasing any public land.

It further states that “a lease entered into without the prior written approval of the Minister shall be of no effect.”

The audit also found that AMA failed to provide evidence that the rental values of the two properties were determined through a competitive auction process as required by law.

The first property, measuring 1.09 acres at Kaneshie in the Okaikwei South District, was leased to Hamm Company Limited on September 16, 2025 for 40 years at a lump sum of GH¢2.14 million, with an option to renew the lease for another 25 years.

The second property, measuring one acre at South Ridge in the Ashiedu Keteke District, near the Ghana Maritime Authority Head Office, was leased on December 19, 2025 for 50 years at a lump sum of GH¢3 million, also with an option for a further 25-year renewal.

The Auditor-General noted that the long lease periods denied the Assembly the opportunity to use the lands for future public services and development projects.

The report, therefore, recommended that AMA recover the two parcels of land and record them in its asset register.

It stressed that the lease agreements are “null and void and of no legal effect” and directed the Assembly to ensure that all future leases comply with the Public Financial Management Regulations and other government directives.

The illegal land leases were among several irregularities identified in the audit of the Assembly.

The report revealed that AMA still owes GH¢11.12 million on a National Investment Bank loan that was restructured in 2019 using government properties as collateral without the approval of the Finance Minister. Although the Assembly had paid GH¢602,370.54 as of November 30, 2025 the outstanding balance remained GH¢11.12 million.

The Auditor-General warned that the situation “could result in the loss of Government property and the associated economic benefits to the Assembly.”

The audit further found that AMA paid GH¢2.98 million in commissions to Omni Strategies Limited after outsourcing the collection of property rates and business operating permit fees from 393 institutions that were already complying with their payment obligations.

The Auditor-General recommended that the Assembly collect such revenue internally to avoid unnecessary expenditure and improve value for money.

The Executive Summary of the report also highlighted other irregularities recorded in Metropolitan, Municipal and District Assemblies across the country.

These include GH¢872,137 paid for abandoned projects, GH¢411,400 worth of hospital equipment that remained unused, and GH¢290,570 worth of store items and fuel that could not be accounted for.

The report also identified tax irregularities involving seven Assemblies, where taxes were either not deducted or not paid to the appropriate authorities.

The Auditor-General recommended the recovery of funds where necessary and urged all Assemblies to comply strictly with the Public Financial Management Act and its Regulations to prevent future irregularities.