Executive Director of the Ghana Centre for Democratic Development (CDD-Ghana), Professor H. Kwasi Prempeh, has called for the abolition of “retirement on salary” payments in the public sector, describing the practice as unique to Ghana and unsustainable.

“We must scrap the ‘retirement on salary’ compensation practices in our public sector. Do we know any other place in the world where this sort of thing happens as commonly as it does here? We are just ridiculous!” Prof. Prempeh wrote on Facebook.

His comments came in reaction to figures disclosed by Finance Minister Dr. Cassiel Ato Forson, showing that Ghana spent 44 percent of its total tax revenue on public sector wages in 2025—far above the ECOWAS-recommended ceiling of 35 percent.

At a high-level meeting between President John Mahama and organised labour, Dr. Forson explained the growing pressure of the wage bill on government finances. Out of a total tax revenue of GH¢183 billion, statutory obligations—including transfers to DACF, GETFund, NHIL, and debt servicing—consumed GH¢122.1 billion, leaving only GH¢61.9 billion for other government operations.

The Minister further revealed that the wage bill alone reached GH¢78.9 billion, forcing the government to borrow roughly GH¢17 billion just to meet salary obligations. He emphasised that the combined burden of wages, debt, and statutory transfers exceeds total tax revenue, crowding out spending on critical infrastructure such as schools, hospitals, and roads.

While noting that fair remuneration remains a constitutional obligation, Dr. Forson cautioned that the current trajectory of public sector compensation represents a structural risk to fiscal sustainability and service delivery.

He stressed the importance of careful management of wage growth alongside broader fiscal reforms to restore balance and create room for development spending.

Prof. Prempeh’s call to end the practice of paying retirees as if they were active employees aligns with concerns about Ghana’s ballooning wage bill and the pressure it places on the nation’s finances.

In 2024, a Ghanaian think tank, Solidaire Ghana, opposed the government's practice of renewing contracts for public officials approaching retirement.

This criticism arose in response to the Akufo-Addo administration's decision to extend the tenure of Auditor-General Johnson Asiedu, despite his nearing retirement age.

Additionally, the government extended contracts for other key figures such as Police Chief Mr. James Oppong Boanu, former Commissioner General of the Ghana Revenue Authority Rev. Amishaddai Owusu-Amoah, and the then Commissioner General Ms. Julie Essiam.

These actions sparked controversy within the affected state institutions, raising concerns about nepotism and the potential for increased corruption.

Alexander Twum-Barimah Esq., Director for Policy and Planning at Solidaire Ghana, has condemned these extensions, arguing that they could detrimentally impact institutional dynamics.

Mr Twum-Barimah emphasized that allowing retiring officials to depart as scheduled would open opportunities for fresh perspectives and innovative leadership, essential for organizational growth and effectiveness.

According to the legal practitioner, allowing officers due for retirement to leave "provides an opportunity to introduce fresh perspectives and innovative ideas into the organization."

"New leaders can bring different approaches and strategies, fostering a culture of creativity and progress in institutions such as the Ghana Revenue Authority and the Ghana Police Service, among others," he added.

He urged the Akufo-Addo government to prioritize effective succession planning, which he believes is crucial for ensuring the long-term sustainability of public institutions.

Mr Twum-Barimah stressed that ending contract extensions would foster a culture of advancement for younger employees, enabling them to contribute meaningfully to organizational success.

Last year, John Dramani Mahama stated that 33 former government appointees implicated in corruption-related cases in the Operation Recover All Loot (ORAL) Team report would, in due course, face prosecution.

Addressing the African Union Advisory Board Against Corruption at the Jubilee House on Tuesday, June 3, he noted that the Attorney-General and Minister for Justice, Dominic Ayine, was preparing the cases for judicial proceedings.

“We set up the ORAL Committee, and they identified 33 cases, which were handed over to the Attorney-General. We created special investigative teams to handle each of them,” he said.

He added that some of the cases had uncovered significant evidence, including the acquisition of properties through illicit wealth, with several at advanced stages of prosecution while others were being prepared.

Operation Recover All Loot (ORAL) was an initiative established by the President to gather information on corruption and channel it to the appropriate state institutions for further investigation.

The committee was chaired by Samuel Okudzeto Ablakwa and included former Auditor-General Daniel Domelevo, retired Police Commissioner Nathaniel Kofi Boakye, legal practitioner Martin Kpebu, and investigative journalist Raymond Archer.

At the time, the numerous cases submitted by the ORAL team to President Mahama were being investigated by the Attorney-General, Dr Ayine.

The committee’s work also increased public awareness about the need to safeguard state resources.

Its report further revealed that about $21.19 billion could potentially be recovered from misappropriated state assets and undervalued land transactions.

ORAL Chairman Ablakwa indicated that if the recovery efforts were successful, the state could retrieve as much as $20.49 billion.

Key cases cited in the report included the National Cathedral project, the PDS deal, and the Saltpond decommissioning project.

Meanwhile, President Mahama dismissed claims that ORAL was being used for political vendettas, maintaining that the initiative was aimed solely at strengthening Ghana’s anti-corruption drive.