Auditor-General's report "smells badly"

... Gov't got GH¢290 million in foreign grants
... Declared only GH¢28,598
... Where is the remaining GH¢295 million?
Accra, Nov. 27, GNA - The Committee for Joint Action (CJA) on Thursday described the 2007 report of the Auditor-General on Ghana's Public Accounts as "smelling badly" and worse than the 2006 report. According to the CJA, which is a pressure group, the Auditor-General's report noted that there were no bank reconciliation statements on major bank accounts to confirm the accuracy or otherwise of balances.

"What is worse, there were no cash book balances to reconcile government spending in the following Bank of Ghana Accounts: A/C No. 0121360014004; A/C No. 0121360014007; A/C No. 0121360014039."

The CJA also said the report indicated that government under-declared monies that had been received from foreign donors. It said although the government received a total of GH¢ 295.4 million in foreign grants, they declared only GH¢ 28,598.40 leaving a balance of GH¢ 295,355,697.61.

Mr. Kwasi Pratt Jnr., a spokesperson for CJA, told journalists at a press conference organized in Accra to highlight some of findings in the 2007 Auditor-General's report that government also failed to disclose over GH¢ 159.4 million representing monies from divested State owned Companies to the Auditor-General.

"Government spending on Road and Non-Road Arrears was underestimated by as much as GH¢ 45,851,428.59. According to the Auditor-General, the inefficient sharing of information among Unit Heads and Ministries, Departments and Agencies resulted in such inconsistencies in financial reporting."

Mr Pratt said, the Auditor-General found that the government failed to declare the correct amounts of money collected by the Revenue Collecting Agencies, made up of the Internal Revenue Service, Customs, Excise and preventive Service, and VAT Service.

"Whereas the Revenue collecting Agencies paid to the government a total of GH¢ 3,083,333,883.33 the NPP government only declared GH¢ 3,071,445,399.22 concealing an amount of GH¢ 11,888,484.05," he added. On Direct Debit Transfer, the Auditor-General's report said contrary to Section 19(4) of the Financial Administration Act, which stated that "every head of department shall ensure a record is kept of cheques or other instruments issued under the direction of that department," Direct Debit Transfers totalling GHC 286,183,092 million made on overseas travels and purchases by Controller and Accountant General's Department on behalf of 10 Ministries, Departments and Agencies (MDAs) could not be traced in the Treasury Records of the related MDAs.

Mr Pratt Jnr. said according to the report there were substantial discrepancies totalling GHC 16,166,038 between the expenditure figure disclosed in the Public Accounts and that of the accounts of the MDAs. "Although the government claimed to have released a total of GH¢ 53,185,621 to those Ministries, the Ministries actually received only GH¢ 37,019,583," he added.

Mr Pratt Jnr. said the report also accused government for short-changing organizations such at the Ghana National Association of Teachers and the Ghana Trades Union Congress who it went into agreement with to make deductions at source from the salaries of some government workers and pensioners for onward payment to those beneficiary organizations on a periodic basis.
He said out of a total of GH¢ 1,601,997.85 collected on behalf of those organizations, only GH¢ 964,259.81 was transferred to them leaving a balance of GH¢ 637,738.04.

Mr Pratt Jnr said the report also found that total payment of GH¢ 133 million in respect of 12.5 per cent Social Security Fund to SSNIT, and GHc 23,073,247.38 which was for 2006 deductions were not disclosed in the accounts.

"The report also noted that an outstanding balance of GH¢ 17,381,728 as at December 31, 2007 was similarly not disclosed in the accounts," he said.

Mr Pratt Jnr. said the findings of the report were more evidence of corruption, maladministration and ineptitude in public administration, which the people of Ghana could not ignore.

"It is time to commit to the building of a new society based on the principles of transparency, probity and accountability. The New Patriotic Party has shown that it cannot be a partner in this enterprise. Our thumbs must become important tools in effecting the necessary changes in our society," he added.