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Business News of Monday, 4 January 2016

Source: B&FT

Gov’t migrates 120 agencies onto payroll

Dep. Minister of Finance, Casiel Ato Forson Dep. Minister of Finance, Casiel Ato Forson

The Controller and Accountant General (CAGD) has been able to migrate 120 subvented organisations onto the government mechanized payroll as at December, 2015.

The corrupt practice of filling salaries and generating “ghost names” on the public payroll, costs Ghana about GH¢300 million annually, according to the Ghana National Anti-Corruption Action Plan (NACAP).

According to reports within the past two years, Ghana’s public sector had a staff size in the region of 800,000 with wages accounting for about 70 per cent of government’s revenue.

The Finance ministry has indicated that, government’s target for the reduction in wage spending is 35 per cent of revenue by 2017.

However, following the inception of the government’s policy decision to migrate all subvented organizations onto the payroll: government.

In a press release by the Finance Ministry copied to the B&FT, it explained that the Controller and Accountant General’s Department has been directed by the Government to complete the migration process by end of March 2016. Twenty (20) of the Subvented Agencies (excluding the Military) are yet to be migrated.

The Department therefore wishes to inform these remaining Agencies whose salaries are paid outside the Government of Ghana mechanized payroll system at CAGD that their subventions would cease in March 2016 if they fail to submit details of payroll information for migration onto the payroll.

The policy decision is to effectively manage and exercise budgetary control over payroll cost.

Information on the affected Agencies is available on the CAGD website at www.cagd.gov.gh.