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5th December, 2011
EXPOSED! GHC173.2m Embezzled
A total of GH¢173,174,541 went down the drain in 2010 as a result of financial irregularities in the country’s public account system.
The report of the Auditor-General ‘s Public Accounts of Ghana for the year ended December 31, 2010, has revealed, that cash irregularities escalated by 560.5 per cent from GH¢14,315,000 in 2009 to GH¢94, 545, 872 in 2010.
The report signed by the Auditor-General, Richard Quartey, said cash irregularities which accounted for 54 per cent of financial irregularities were prominent in the Ministry of Water Resources, Works and Housing (GH¢72,899.015).
Others were ex-Ministry of Aviation (GH¢9,533,055), Ministry of Finance and Economic Planning (GH¢7,775,571), Ministry of Youth and Sports (GH¢1,069,750) and Ministry of Food and Agriculture (GH¢932,787).
The audit report stated that there was no strict adherence to relevant provisions in the Financial Administration Act 2003 and Financial Administration Act 2004 which resulted in lapses related to failure to keep adequate records and lack of supervisory control over transactions which led to misappropriation of funds.
“As in previous reports, this year’s audit disclosed poor cash management practices resulting in failure to pay revenue collected into the consolidated fund, un-authorized payments as well as non-availability of adequate records on revenue collected, the report said.
Also noted were instances of inadequate controls over procurement, patrol and contract irregularities.”
“I am not satisfied with the litany of financial irregularities which are exhibited yearly by Ministries, Departments and Agencies; I therefore strongly recommend that the Ministry of Finance and Economic Planning develops a code of ethics for Public Service to ensure proper, effective and efficient use of the funds,” Mr Quartey stated in the report.
According to the report cash irregularities were made up of misappropriation of revenue/other receipts, unacquitted payments, dishonoured cheques, unauthorised expenditure.
The rest were non-availability of records on revenues collected, outstanding payment vouchers, misapplication of funds and unpresented value books.
The report said while payroll overpayment, outstanding loans/debt and store irregularities, stores and procurement irregularities decreased in 2010 from 2009, cash irregularities, Value Added Tax, Internal Revenue Service, and Customs, Excise and Preventive Service taxes (now Ghana Revenue Authority),contract irregularities and staff rent arrears escalated within the period.
The audit report said taxes that remained uncollected at the end of 2010 surged by 879.6 per cent from GH¢7,392,358 in 2009 to GH¢72,414,244 in 2010 was and attributed to ineffective supervision of scheduled officers, lack of sustained pursuit of taxpayers and failure by District Tax Officers to apply sanctions for non-payment of taxes as stipulated in the tax laws.
Contract irregularities increased marginally by GH¢53,893 or 23 per cent from GH¢229,685 in 2009 to GH¢283,578.
Contract management lapses included acceptance of goods supplied in excess of ordered quantities which committed management beyond budgeted expenditure.
The report said staff rent arrears figures at the end of 2010 amounted to GH¢82,838 representing an increase of GH¢37,755 or 83.7 per cent over the 2009 figure of GH¢45,083 and the report blamed management of MDAs for failure to ensure that rent was deducted at source from staff salaries.
Payroll overpayment irregularities decreased by 36 per cent from GH¢787,855 in 2009 to GH¢498,259. The irregularities related to the crediting of individual bank accounts of deceased pensioners with various amounts and payment of unearned salaries to separate staff.
Stores and procurement irregularities amounted to GH¢684,375 compared with GH¢1,270,295 in 2009, a decrease of GH¢585,920 or 46.i per cent.
The report said though some progress had been made, the irregularities continue to relate to purchase not taken on inventory charge, overpayment to suppliers and unaccounted-for fuel coupons while laxity in supervisory control was a principal contributory factor.
The Minister of Finance and Economic Planning, Dr Kwabena Duffour moving the motion in Parliament on November 16 for the house to approve the 2011 Budget Statement and Economic Policy of the government noted that “the government has been undertaking reforms in its public financial management systems for the past 15 years.”
He said while these reforms have yielded some results, some weaknesses still remain.
The report of the Auditor-General ‘s Public Accounts of Ghana for the year ended December 31, 2010, has revealed, that cash irregularities escalated by 560.5 per cent from GH¢14,315,000 in 2009 to GH¢94, 545, 872 in 2010.
The report signed by the Auditor-General, Richard Quartey, said cash irregularities which accounted for 54 per cent of financial irregularities were prominent in the Ministry of Water Resources, Works and Housing (GH¢72,899.015).
Others were ex-Ministry of Aviation (GH¢9,533,055), Ministry of Finance and Economic Planning (GH¢7,775,571), Ministry of Youth and Sports (GH¢1,069,750) and Ministry of Food and Agriculture (GH¢932,787).
The audit report stated that there was no strict adherence to relevant provisions in the Financial Administration Act 2003 and Financial Administration Act 2004 which resulted in lapses related to failure to keep adequate records and lack of supervisory control over transactions which led to misappropriation of funds.
“As in previous reports, this year’s audit disclosed poor cash management practices resulting in failure to pay revenue collected into the consolidated fund, un-authorized payments as well as non-availability of adequate records on revenue collected, the report said.
Also noted were instances of inadequate controls over procurement, patrol and contract irregularities.”
“I am not satisfied with the litany of financial irregularities which are exhibited yearly by Ministries, Departments and Agencies; I therefore strongly recommend that the Ministry of Finance and Economic Planning develops a code of ethics for Public Service to ensure proper, effective and efficient use of the funds,” Mr Quartey stated in the report.
According to the report cash irregularities were made up of misappropriation of revenue/other receipts, unacquitted payments, dishonoured cheques, unauthorised expenditure.
The rest were non-availability of records on revenues collected, outstanding payment vouchers, misapplication of funds and unpresented value books.
The report said while payroll overpayment, outstanding loans/debt and store irregularities, stores and procurement irregularities decreased in 2010 from 2009, cash irregularities, Value Added Tax, Internal Revenue Service, and Customs, Excise and Preventive Service taxes (now Ghana Revenue Authority),contract irregularities and staff rent arrears escalated within the period.
The audit report said taxes that remained uncollected at the end of 2010 surged by 879.6 per cent from GH¢7,392,358 in 2009 to GH¢72,414,244 in 2010 was and attributed to ineffective supervision of scheduled officers, lack of sustained pursuit of taxpayers and failure by District Tax Officers to apply sanctions for non-payment of taxes as stipulated in the tax laws.
Contract irregularities increased marginally by GH¢53,893 or 23 per cent from GH¢229,685 in 2009 to GH¢283,578.
Contract management lapses included acceptance of goods supplied in excess of ordered quantities which committed management beyond budgeted expenditure.
The report said staff rent arrears figures at the end of 2010 amounted to GH¢82,838 representing an increase of GH¢37,755 or 83.7 per cent over the 2009 figure of GH¢45,083 and the report blamed management of MDAs for failure to ensure that rent was deducted at source from staff salaries.
Payroll overpayment irregularities decreased by 36 per cent from GH¢787,855 in 2009 to GH¢498,259. The irregularities related to the crediting of individual bank accounts of deceased pensioners with various amounts and payment of unearned salaries to separate staff.
Stores and procurement irregularities amounted to GH¢684,375 compared with GH¢1,270,295 in 2009, a decrease of GH¢585,920 or 46.i per cent.
The report said though some progress had been made, the irregularities continue to relate to purchase not taken on inventory charge, overpayment to suppliers and unaccounted-for fuel coupons while laxity in supervisory control was a principal contributory factor.
The Minister of Finance and Economic Planning, Dr Kwabena Duffour moving the motion in Parliament on November 16 for the house to approve the 2011 Budget Statement and Economic Policy of the government noted that “the government has been undertaking reforms in its public financial management systems for the past 15 years.”
He said while these reforms have yielded some results, some weaknesses still remain.
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