Financial irregularities totaling GH15.1bn are found by the Auditor General in public organizations and boards.

According to the 2022 Auditor-General’s report, anomalies in the functioning of public boards, businesses, and other statutory institutions for the previous year totaled more than GH15.1 billion.

In comparison to the 2021 figure of GH17.48 billion, the amount is down 13.86%, or GH2.4 billion.

It is crucial to remember that the errors from last year included almost GH15 billion in recoverable amounts and a GH47.28 million administrative infraction.

The recoverable element of the irregularities made up 99.69%, and the administrative portion, which was GH47.3 million, made up 0.31 %.

This sum, which is made up of procurement and other irregularities, cannot be recovered.

Therefore, in order to maintain fiscal restraint in the management of public resources, the Auditor-General requested that its recommendations be strictly followed.

The majority of the inconsistencies involved unpaid debts, loans, recoverable amounts, cash, payroll, purchases, taxes, retailers, and contracts.
From 2018 to 2022, irregularities were a common occurrence on public boards and organizations; about GH53.87 billion in such cases were reported throughout that time.

The amount of abnormalities rose from GH3 billion in 2018 to GH17.5 billion in 2021 before falling to GH15.1 billion in 2022.

Despite the fact that 113 institutions were audited last year, slightly more than the 101 institutions that were audited in 2021, the report, which the Auditor General presented to Parliament and a copy of which Rapid News has obtained, shows that the majority of the irregularity categories decreased last year compared to 2021.

The procurement irregularities, along with other procedural violations and flaws in public finance management, made up the administrative irregularities.

The study emphasized that there was no financial damage as a result of the administrative mistakes.

The report noted that the recoverable sum was made up of advances and loans issued to employees of various institutions as well as intergovernmental agency debts, other past-due receivables, locked-up investments, unpaid taxes, unretired imprests, and locked-up investments.

The administrative offenses included procurement-related violations, past-due accounts payable, and the payment of fines for late payments to vendors.

These inconsistencies include debts owed to non-governmental organizations, trade creditors, staff creditors, unpaid loans, and cash held in underperforming investments.

Customers of Ghana National Gas Limited Company, for instance, owe the company $741.93 million, of which $515.20 million is owed by the Bui Power Authority, $215.78 million is owed by the Ghana National Petroleum Corporation (GNPC), and GH1.40 million is owed by the Northern Electricity Distribution Company (NEDCo).

According to the Auditor-General’s assessment, the absence of adequate debt collection strategies, the lack of credit controls to recover the loans, and management’s lackadaisical attitude toward loan recovery all significantly contributed to the irregularities.

The irregularities were also caused by improper debtor record maintenance, a lack of debtor ageing analyses, a lack of documentation of agreements outlining the terms and conditions of loans, a failure to ensure that loans were repaid, and management’s noncompliance with rules and regulations.

Recommendation

“We recommended that management of public boards, corporations, and other statutory institutions should strictly adhere to rules and regulations with regard to debts management,” the report emphasized.

“They should also put in place proper policies for the management of loans and other receivables as well as ensuring that loans and debts are repaid on due dates to avoid or minimise the occurrence of bad debts,” the report continued.

Inadequate oversight and absence of controls

Unauthenticated payments, misapplied monies, and the payment of board allowances to Council Members without ministerial clearance all constitute cash irregularities.

GH 14.47 million of the GH 23.51 million in cash irregularities came from unrecovered staff advances given to Ghana Water Company Limited workers.

The report emphasized that lackluster oversight and ineffective procedures were to blame for the errors.

The lack of financial professionals to properly file and maintain records was another issue that led to monetary anomalies.

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