MDAs still operating accounts outside consolidated fund

Accra (Greater Accra) 9th July '99 - The 1996 Auditor-General's Report on Public Accounts say some ministries, departments and agencies (MDAs) are still operating accounts outside the consolidated fund.

This is in contravention of the constitutional provision requiring MDAs to conduct all government financial business through the consolidated fund.

The report on the fund submitted to parliament on Thursday, expressed concern over the inappropriate and unconstitutional manner in which revenues and other public moneys are collected and used outside the fund.

It noted that while the Ministry of Finance says its directive issued in 1997 that all special accounts operated outside the fund be lodged with the central bank is being complied with, the Controller and Accountant-General (CAG) says that full compliance is yet to be achieved.

The report, therefore, urged the Bank of Ghana (BOG) and the CAG to continue their joint efforts of ensuring that these accounts are transferred into the consolidated fund.

"MDAs operating revolving funds without parliamentary approval should take steps to regularise their operations and to ensure that these are reported as part of public funds."

The report charged the Ministry of Finance to conduct annual budget hearings on revenue collections by MDAs and submit revenue and expenditure estimates for consideration and approval by parliament.

''This will provide the basis for the assessment of revenue generation by MDAs,'' the report said. The report further urged that seminars for MDAs under PURMARP should continue to include issues on the consolidated fund to ensure all government financial business is carried out as required by the constitution.

It said the existing pension scheme should be reviewed to allow for inclusion of data such as former place of work, last duty station and date of separation.

''This will allow pensioners to be traced back to their former places of work for review purposes and stem the flow of unauthorised insertion of names on the pension payroll.'' The CAG is charged to introduce procedures to ensure that confirmation of advances and foreign loans appearing in the public accounts at year-end to ensure their validity of accounts.