Ex-DCE in Trouble

THE FORMER District Chief Executive (DCE) for Adansi West District Assembly (AWDA), Mr. George Adu Mensah, has been mentioned by a 12-page audit report as having contributed to the financial mismanagement of the assembly in the last two years of the last regime.

He is said to have approved the award of 15 new contracts valued at ?962,744,847 in May 2000 without regard to the cash flow position of the assembly.

The ex-DCE reportedly gave instructions for purchases and supplies to be made when funds were not available.

Citing an instance, the report signed by Mr. P. K. Arhin, a Director of the Auditor-General, said Mensah authorized the purchase of 400 electric poles for 22 communities at the cost of ?220 million against the assembly's approved budget of 200 poles for 10 communities at ?132 million resulting in an excess of ?88 million.

The report further explained that the 400 poles were purchased at a time the assembly had a vote balance of ?160,859,541.

With regards to the purchase and distribution of the said 400 electric poles, the audit report indicated that payment was made directly by the Administrator of the Common Fund in November 2000 when funds had not been released to the assembly.

It also indicated that 391 of the electric poles were actually supplied and that 336 were erected by the communities through communal labour.

The nine poles short-delivered by the contractor, Amotab Company Ltd, was valued at ?4,950,000.

The contractor, according to the report, claimed to have erected the poles at an extra cost of ?65 million when in actual fact they were erected by the communities.

By paying ?220 million for the 400 poles and cost of claimed transport and erection by Amotab Company, the assembly exceeded the approved estimated budget by ?153 million.

According to the audit report, the award of contracts not budgeted for and purchases of goods for which no provision has been made over-stretched the assembly's financial resources causing a significant ?2.5 million unpaid commitment which was carried over to the year 2001.

The document also mentioned that the assembly recorded a shortfall of ?2,448,254,588 in revenue targeted for the 1999 and 2000 years.

The arrears of revenue included that of AGC which had refused to pay its property rates to the assembly.

In the area of cash management, the audit report disclosed that about 17 individuals and organizations were advanced ?167 million between May 1995 and December 2000.

Out of the amount only ?10.7 million had been recovered at the time the NDC left office.

A total of ?77,443,803 out of the remaining balance of ?157 million was advanced to contractors in 2000, the accountants stated.

By June 2001 total loans of ?135,642,000 out of which only ?6.5 million had been recovered was still outstanding under the Poverty Alleviation Fund (PAF).

As at January 2000, a total of ?91,842,000 had been disbursed by the defunct Co-operative Bank to 145 beneficiaries.

ADB also disbursed a total of ?43,800,000 to 61 beneficiaries as at October 2000, bringing the total to ?135.6 million.

The report also confirmed allegations of impropriety in the purchase and distribution of cement and roofing sheets to assist communities in their community initiated projects.