The Controller and Accountant General's Department (CAGD) has deleted 5,861 ghost names from the pay rolls of public institutions between January and November, 2015.
The CAGD said some of the cases identified as fraud had been referred to security agencies for appropriate actions to be taken.
This was necessary due to the implementation of the Electronic Salary Payment Voucher (E-SPV) system.
Ms Grace Adzroe, the Controller and Accountant General, disclosed this in Accra on Thursday, when Government officials led by Mr Seth Terkper, the Minister of Finance and Economic Planning, paid a working visit to the department.
The Minister visited the Department’s new data centre, with the state-of-the art facilities to meet international standards and the electronic screen monitor, which monitors the payroll system in the country.
Ms Adzroe said the limitation of payment of salary arrears to three months was due to the detection of fraudulent deals in public institutions, with regard to management of data on the date of appointments, promotions and reactivation of public sector employees on the payroll.
She said the country has started implementing the Ghana Integrated Financial Management Information System (GIFMIS), as part of the Public Financial Management Reform Programme to improve Ghana's fiscal discipline and macro-economic stability.
GIFMIS is an integrated computerized financial management system that serve as government’s official accounting system for budget preparation and implementation; accounting and financial reporting; as well as cash and assets management in all ministries, departments and agencies and also metropolitan, municipal and district assemblies.
It being implemented by the Controller and Accountant General’s Department and the Ministry of Finance, with support from development partners namely the World Bank, Department of Foreign and International Development, the European Union and the Danish International Development Assistance.
Mr Terkper assured the CAGD of Government’s support for the various financial reforms that the department had embarked upon, to ensure financial discipline in the management of public finance.
He said government was working to make the procurement system electronic to curb inefficiencies in the public payroll system and, therefore, charged public Human Resource Managers to report any transfer, retired and dead persons to the CAGD for action.