Auditor-General Serves Notice

The Auditor-General's Department says the government has lost over ?11 billion in unauthorized and unearned salaries.

Briefing the press in Accra on Friday, on the "the status of the special audit of government payroll", which was requested by the government in November last year, the Auditor-General, Mr. Edward Dua Agyeman said,

"It is believed that a large percentage of the expenditure on Public Service Payroll is made up of ghost names which give cause for national concern. Thus for the first time a national crusade is being waged on ghost names with the active support and encouragement of the government to find a lasting solution to this economic crime."

The exercise is in three phases. Phases one and two covered the Ministries, Departments and Agencies, and then the Metropolitan, Municipal and District Assemblies. He said these phases are about 70 per cent complete.

The third phase is to commence in the first week of June 2002, and will cover all subvented organisations and Ghana Government pension payroll.

He said preliminary findings indicated that, "over 3,200 persons who have left the government service have their names maintained on the active payroll and pension payroll for periods ranging from one month to six and half years and their salaries paid every month."

This has accumulated in over ?4.2 billion disbursed illegally. However over ?1.6 billion has been recovered.

Mr. Edward Dua Ayeman said over ?1 billion has also gone down in unearned Social Security Fund contributions.

He said the names of 3,285 people have been forwarded to the Controller and Accountant-General for immediate deletion from the pay roll. Another 9,800 names which were duplications or above the retired age, cost ?6.4 billion.

The Auditor-General has ordered all executives at government institutions to submit documents attesting to the existence of their workers by the 17th of this month.

Mr. Peprah, Controller and Accountant-General said his outfit has been able to save a total of ?7.6 billion during the first and second phases of the exercise.

He was however not happy about the response of the agencies. "All MDAs and MMDAs were requested to submit returns of their separated staff but we have received only about 30 per cent of the expected response."

He said if the Chief Directors and Chief Executives of the respective organisations fail to comply by the stipulated date, 17 May 2002, they would have their "salaries blocked".

The Audit Service has set-up a permanent Payroll Audit Department to continue with the payroll audit.

It said, "recommendations will be made to the government on the introduction of a unique identification system such as National ID Number or a credible Social Security Number which cannot be duplicated."

Meanwhile, the Registrar-General's Department has asked all companies to submit their annual returns by June 28 or be prosecuted.

Proprietors of registered partnership firms and business names are also reminded to annually renew registration of their businesses.