Auditor General, Daniel Yaw Domelevo
The public accounts of Ministries, Departments and Agencies (MDAs) for the financial year ended December 31, 2017 have revealed that the overall financial impact of weaknesses and irregularities discovered by the Auditor-General amounted to GH¢892 million (GH¢892,396,375.19).
The breakdown is: tax irregularities – GH¢655 million (GH¢655,599,736.33); cash irregularities – GH¢190 million (GH¢190,308,499); stores/procurement irregularities – GH¢41 million (GH¢41,668,682); payroll irregularities – GH¢1.7 million (GH¢1,776,893); outstanding loans/advances – GH¢2.6 million (GH¢2,695,601); and rent irregularities – GH¢195 million (GH¢195,360.26).
Finance Ministry tops with GH¢697m
The Finance and Economic Planning Ministry recorded the highest irregularities, amounting to GH¢697 million (GH¢697,367,206.33).
Employment Ministry - GH¢135m
It is followed by the Employment and Labour Relations Ministry with GH¢135 million (GH¢135,945,568).
Gender Ministry - GH¢25m
The Ministry of Gender, Children and Social Protection recorded GH¢25 million (GH¢25,561,177) as the third highest figure.
Health Ministry - GH¢21
The Health Ministry accounted for the fourth highest irregularities of GH¢21 million (GH¢21,395,951).
Irregularities of others MDAs
Others MDAs found culpable include Interior Ministry - GH¢2.8 million (GH¢2,884,915); Communication Ministry - GH¢2.4 million (GH¢2,495,526); Trade and Industry – GH¢1.1 million (GH¢1,106,671); Local Government and Rural Development Ministry - GH¢1.2 million (GH¢1,274,251); Ministry of Agric - GH¢1.7 million (GH¢1,778,350); and Education Ministry - GH¢743,721.
The rest are Chieftaincy Ministry - GH¢142,916; Fisheries Ministry - GH¢54,747; Defence - GH¢39,099; Lands and Natural Resources - GH¢96,006; Ministry of House and Housing - GH¢16,887; Roads and Highways - GH¢395,773; Ministry of Justice and Attorney-General’s Department - GH¢6,371; Ministry of Sanitation and Water Resources - GH¢65,124; Information Ministry, GH¢16,366; Judicial Service - GH¢902,107; and Office of Government Machinery - GH¢107,642.
In the report, which has been submitted to Parliament, the Auditor-General, Daniel Yaw Domelevo, pledged to investigate these further and, if possible, hold the officials accountable by way of disallowing the items of expenditure and surcharge.
Tax irregularities – GH¢655m (GH¢655,599,736.33)
According to the report, tax irregularities constitute 73.46% of the total financial infraction reported.
Prestea Sankofa owes GH¢11.5m mineral royalties
The amount includes GH¢11.5 million (GH¢11,578,688.69), which was in respect of Prestea Sankofa Limited’s mineral royalties indebtedness to the government as of August 2016 and which had remained uncollected by the Ghana Revenue Authority (GRA) since 2012/2013.
Ghana Revenue Authority’s failures
It noted that these irregularities could be traced mainly to failure on the part of the GRA to collect tax revenue and also apply measures and sanctions against defaulters as stipulated in Paragraph 40 and 41 of the Income Tax Act 2015, (Act 896) Sections 135(2) and 136 of the Internal Revenue Act, 2000 (Act 592).
Finance Ministry tops tax irregularities with GH¢598m
MDAs that incurred tax irregularities include Finance and Economic Planning Ministry - GH¢598million (GH¢ 598,210,720); Ministry of Health - GH¢80,819; Defence - GH¢39,099; Lands and Natural Resources - GH¢11,234; Trade and Industry - GH¢1.1million (GH¢1,106,671).
Others are Ministry of Communication - GH¢120,381; Roads and Highways Ministry - GH¢82,127; as well as Gender, Children and Social Protection Ministry - GH¢9.4 million (GH¢9,461,878).
Cash irregularities – GH¢190m (GH¢190,308,499)
The report put total cash irregularities noted during the period at GH¢190 million (GH¢190,308,499), which represents 21.35% of the total irregularities.
These irregularities, which cut across MDAs, were attributable to unapproved disbursement, unauthorised use of Internally Generated Funds (IGF), dishonoured cheques, unaccounted for revenue, and unsupported payment vouchers.
Unpresented payment vouchers
Irregularities under this category are unauthorised transfers of funds, funds to bank not credited, payment of public funds into personal bank accounts, belated/non-lodgement of public funds, as well as misapplication of funds.
GH¢10.2m penalty on late transfer of funds by commercial banks
Included in the total cash irregularity of GH¢190,560,990.86 was an amount of GH¢10.2 million (GH¢10,288,132.53), which represented penalty on late transfer of funds by commercial banks but not collected.
Employment Ministry tops cash irregularities with GH¢135m
MDAs that incurred cash irregularities include Finance and Economic Planning Ministry - GH¢10.3 million (GH¢10,355,966); Education Ministry - GH¢509,714; Health Ministry - GH¢20 million (GH¢20,250,255); Ministry of Food and Agriculture - GH¢13,803; Interior Ministry - GH¢2,857,915; and Lands and Natural Resources Ministry - GH¢75,750
Others are Local Government Ministry - GH¢648,233; Employment and Labour Ministry - GH¢135 million (GH¢135,877,100); Gender, Children and Social Protection Ministry - GH¢16 million (GH¢16,088,303); Chieftaincy Ministry - GH¢142,916; and Communication Ministry - GH¢2.3 (GH¢2,375,145).
The rest are Roads and Highways Ministry - GH¢313,646; Ministry of Justice and Attorney-General’s Department - GH¢6,371; Ministry of Water Resources and Sanitation - GH¢65,124; Judicial Service - GH¢649,616; and Office of Government Machinery - GH¢78,642.
Stores/Procurement irregularities – GH¢41.6m
Stores and procurement irregularities noted during the period amounted to GH¢41.6 million (GH¢41,668,682).
GH¢39.3m of value books procured but not used
The Auditor-General noted that included in this irregularity was GH¢39.3 million (GH¢39,347,886), covering value books procured but were not put to use, resulting in wasteful expenditure.
He observed that this irregularity was due mainly to the absence of effective collaboration between the Controller and Accountant-General’s Department (CAGD) and the MDAs regarding the printing and management of value books, resulting in such wasteful expenditure.
The Auditor-General also blamed the irregularity on lack of commitment on the part of entity heads to ensure compliance with established internal control measures, administrative rules, and legislations governing the procurement process.
Payroll irregularities – GH¢1.7m
According to the report, payroll irregularities amounting to GH¢1.7 million (GH¢1,776,893) was recorded during the period reviewed.
“This was due mainly to payments of unearned salaries to separated staff as a result of delays in deleting their names from the payroll, as well as delay in transferring unclaimed pensions and salaries to government chest by the banks,” it added.
Health Ministry tops payroll irregularities with GH¢721,889
The figures for payroll irregularities by MDAs include Finance and Economic Planning Ministry - GH¢620,908; Education Ministry - GH¢215,977; Health Ministry - GH¢721,889; Food and Agriculture Ministry - GH¢37,897; Fisheries and Aquaculture Ministry - GH¢31,483; and Interior Ministry - GH¢27,000.
Others are Lands and Natural Resources Ministry - GH¢9,022; Employment and Labour Relations Ministry - GH¢68,468; Gender, Children and Social Protection Ministry - GH¢10,996; Works and Housing Ministry - GH¢16,887, as well as Information Ministry - GH¢16,366.
Outstanding loans/advances – GH¢2.6m
A significant amount of this irregularity was GH¢1,614,650, which represented tractor and equipment supplied to 19 farmers but remained unpaid.
Agric tops loans and advances with GH¢1.6 million
MDAs that have issues with loans and advances are Finance and Economic Planning Ministry - GH¢209,390; Health Ministry - GH¢238,061; Ministry of Food and Agriculture - GH¢1.6 million (GH¢1,614,650); Local Government Ministry - GH¢604,500; and Office of Government Machinery - GH¢29,000.
Rent irregularities – GH¢195,360.26
The total rent irregularity was GH¢195,360.26.
