Public officials misappropriate C1.4 billion

Numerous cases of misappropriation and embezzlement of public funds ranging from 500,000.00 to 500,164,329.00 cedis have been detected in various Ministries, Agencies and departments (MDA) between 1997 and 1999.

An accumulated figure of about 1.4 billion cedis has either been misappropriated or embezzled by public officials between the same period, a Report of the Public Accounts Committee on the Auditors-General's Reports said on Wednesday.


These were contained in the findings of the Report of the Public Accounts Committee on the Auditor-Generals' Reports on the Public Accounts of Ghana for the years, which ended 31st December 1998 and 1999.


The Public Accounts Committee's Chairman who is also the Minority Leader, Alban Bagbin, laid the Paper before Parliament on Wednesday. The Report said: "Key ministries such as the Education, Health, Food and Agriculture were the worst victims of this rape by public officials."


"For instance, a total of about 933 million cedis and 93 million cedis was noted to have either been misappropriated or embezzled by officials of the Ministry of Health and Education respectively from 1997 and 1999," it said.


The Public Accounts Committee said it "noticed that the major cause of this phenomenon is lack of supervision. Officers entrusted with public revenues are not closely monitored by their superiors to ensure that such revenues are either used for the purposes intended or paid into public chest."


The Committee's Report said: " For instance, the Upper East Regional Treasury Officer, Mr. George Gyapong, with the connivance of two others, misappropriated a total of 500,164,329.00 cedis".

"Further, an accountant of the Hohoe Government Hospital misappropriated revenues collected amounting to 47,083,920.00. cedis. The accountant was able to do this because he was allowed to keep cash receipts for a long period of time before paying into government chest."


The committee also noted with concern the way public funds were used for purposes not approved by parliament.


"Total misapplication of funds recorded by the Auditor-General in his Reports was approximately 2.6 billion cedis," the Committee said. According to the Committee, notable among such misapplications was 1,462,134,658.99 cedis by the Judicial Service. The amount withdrawn from the Service's Deposit Account and used in supplementing its subvention.


"An amount of 958,145,464.00 cedis was also withdrawn from the Guard Duties Account of the Ghana Police Service for the construction of residential flats."


The Committee's Report also touched on pay-roll fraud and irregularities and said: "An accumulated amount of over 630 million cedis was noted to have been paid wrongfully to officials as salaries and allowances between 1997 and 1999."


Another recurring issue identified in the Auditor-General's report by the Committee was that of expired drugs, which was limited to the Ministry of Health (MOH) and the Veterinary Services Department.

"In 1998 and 1999, drugs worth 205 million cedis were noted to have expired under the MOH whilst a total of about 430 million cedis worth of vaccines and drugs were noted to have expired under the Veterinary Services Division of the Ministry of Food and Agriculture as at June 2003."


Another issue touched upon by the Committee, was the refusal of the Ministry of defence to allow the Auditor-General to audit the Ministry.


"The persistent denial by the Ministry of Defence of the Auditor-general to audit the records on arms, ammunition, aircrafts, and naval ships of the Ghana Armed Forces was due to the notion that the security of the nation would be compromised."


"The Ministry however, stated that it now allows the Audit Service access to records of military armaments and military institutions and the physical inspection of some military hardware."