The former Chief Executive Officer of the Ghana Investment Promotion Center (GIPC), Mr. George Kwame Aboagye never paid tax from his salary during his tenure as the CEO of the Center, this was disclosed by the 2011 Auditor General’s report.
“No deduction of tax from CEO’s income. We draw attention that the failure to adhere to the relevant tax regulations had resulted in the loss of tax revenue to the state.” This was continued in the AG’s report.
The former CEO of the center, who is now the Member of Parliament (MP) for Ahanta West, served the Center for years without tax deduction from his salary, contrary to the provision of the 1992 Constitution of the Republic of Ghana.
This was disclosed when the Center appeared before the Public Accounts Committee (PAC) yesterday, to answer to queries raised about their 2011 financial year by the Auditor General.
But in a swift response, the current CEO of the Center, Mrs. Mawuena Trebah explained that since her confirmation as the CEO, taxes have been deducted from her salary.
Mrs. Mawuena Trebah was confirmed the CEO of GIPC in January 2013, by President John Dramani Mahama after she served as the acting CEO, when Mr. George Aboagye resigned in 2012.
On his part, the Director of Finance at GIPC, Mr. Peter Ankrah explained that it was part of their condition of service that CEO’s should not pay taxes from their salary.
At that junction, the chairman of the committee, Hon. Kwaku Agyeman Manu said he was aware some organizations exonerate their CEO’s from deducting taxes from their salary, but could not fathom why GIPC, being a state owned organization was practicing same.
“The CEO is a Ghanaian, he works in Ghana for 365 days, get paid and the company pays tax for the CEO, I know is a policy issue, and I don’t want to say more, but something has to be done about it,” he said.
At this point, the current CEO, Mrs. Mawuena Trebah reaffirmed to the committee that the situation would not continue in the Center under her leadership.
