Controller explains October salary irregularities

The Controller and Accountant-General’s Department’s (CAGD) on Friday called on employees who have complaints in respect to the October 2012 salaries to report to CAGD Payroll Clinics in the Regions and Districts.

CAGD in a statement to the Ghana News Agency in Accra said such complainants can also contact the Clients Service Office at the Headquarters for the necessary action.

The statement said the attention of CAGD has been drawn to the effect that some employees on the Government of Ghana (GoG) payroll, particularly staff of the Ghana Education Service (GES), have complained about the alleged unjustified reductions in their net salaries for October 2012.

It said an investigation of the allegation by a team constituted by the Minister of Finance and Economic Planning revealed that: “The payment of the 2010-2011 Single Spine salary arrears which were enjoyed by public sector staff from October 2011 was largely completed in July 2012”.

The statement said “the payment of 2012 arrears resulting from the 18 per cent salary increase for 2012 was also completed in September 2012. Thus, at the end of October 2012, SSSS arrears (2010-2011) and the 2012, 18 per cent salary increase arrears were no longer available for public sector employees who have been paid all such arrears”.

It explained that “in September 2012, the total amount of 34.9 million Ghana cedis which was paid to GES staff as arrears was no longer available in October 2012”.

According to CAGD some staff of GES experienced significant declines in their net salaries because of their commitments under third party deductions such as servicing of loans which were honoured.

The statement said the CAGD historical information of staff on such third party deductions was updated and the necessary deductions had been duly effected and this could have “resulted in the alleged unjustified reduction in net salaries for October 2012”.

It said “an employee with a basic salary of GH¢1, 481.39 at the end of September 2012 did not suffer any loss in basic salary at the end of October 2012 and similarly, the gross salary of this staff was maintained at GH¢1, 703.60 for September and October 2012.

The statement explained that “this employee, however, who serviced an existing loan to the tune of GH¢76.14 at the end of September 2012 serviced his/her loan facility at GH¢218.74 in October 2012 and this is due to the coming into effect of an additional loan contracted earlier.

With this, the statement said, an amount of GHc403.50 paid to this staff as arrears in September 2012 was no longer available at the end of October 2012.

“Consequently, the net salary of this employee which stood at GH¢1, 639.10 at the end of September 2012 justifiably became GH¢1,000.41 at the end of October 2012 due mainly to the servicing of the additional loan and the non availability of the arrears for this staff”.